Delta Corporation half-year operating income rises 13% to US$112.2M
Zimbabwe’s leading beverage producer increased its interim dividend by 20% as lager, sorghum beer and spirits delivered strong volume growth despite rising costs and a US$97 million tax dispute.
ZIMBABWE – Delta Corporation, Zimbabwe’s largest beverage company, has reported a 13% increase in half-year operating income to US$112.2 million, supported by strong volume growth across its domestic lager beer, sorghum beer and spirits businesses.
The company’s operating income increased from US$99.6 million in the six months ended September 30, 2025, while group revenue rose 18% to US$607.5 million during the period.
Delta Corporation, an associate of AB InBev SA/NV, benefited from relative exchange rate stability in Zimbabwe, mining activity, diaspora remittances and liquidity from the agricultural marketing season. Domestic foreign currency sales increased to 97% of total revenue.
Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 13% to US$126.8 million, while profit before tax increased 10% to US$115.3 million. Basic earnings per share rose to US$5.92 from US$5.67. The board also declared an interim dividend of US$2.40 per share, representing a 20% increase.
Lager beer volume increased 13% to 1.75 million hectolitres, driven by mainstream brands and improved availability of local premium products, including Zambezi Lager. Segment revenue reached US$245.3 million, with operating income of US$80.3 million.
Sorghum beer volume grew 19% to 2.67 million hectolitres, supported by a 27% increase in Chibuku Super sales. Revenue from the segment reached US$153 million.
Non-alcoholic beverages volume increased 4.9% to 1.61 million hectolitres. However, sparkling beverages volume declined 2% following retail price increases linked to value-added tax adjustments and sugar taxes. Schweppes volume grew 29%, supported by expanded direct-store delivery.
African Distillers recorded a 35% increase in volume, with wine growing 65%, ready-to-drink beverages 39% and spirits 24%. Segment revenue reached US$56.5 million.
Regional operations faced challenges, with United National Breweries in South Africa recording a 22% volume decline and National Breweries Zambia falling 17%.
Rising fuel, freight, packaging and raw material costs also constrained margins.
Delta is additionally facing a US$97 million tax assessment from the Zimbabwe Revenue Authority covering 2019 to 2024.
“These assessments have a material impact on the group’s operations if upheld in their current form,” the company said, highlighting ambiguities in tax legislation.
Looking ahead, Delta identified economic policy stability and a review of fiscal measures, particularly the sugar tax, as important priorities.
“Completing the capacity expansion programme and the investment in returnable glass and crates remain key priorities for the year,” the company said.
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