Delta Corporation posts US$807.4M revenue amid sugar tax pressure, regional challenges 

ZIMBABWE – Delta Corporation Limited, Zimbabwe’s largest listed company by market value, has reported a 5% rise in full-year revenue to US$807.4 million for the financial year ending March 2025.  

The revenue growth came despite significant operational headwinds, including a government-imposed sugar tax and underperformance in its regional markets. 

The sugar tax, levied at US$0.001 per gram of added sugar, had a major effect on Delta’s soft drinks division. Over the financial year, the company paid a total of US$21.1 million in sugar tax, with US$14.7 million attributed to the soft drinks unit alone. 

In response, Delta chose to absorb the cost rather than transfer it to consumers through price increases, a strategy that impacted profit margins. 

“The introduction of the sugar tax has materially affected our cost structures,” said Finance Director Alex Makamure. “We’ve chosen to absorb the tax to maintain affordability, but this has inevitably tightened margins.” 

Makamure also highlighted the growing influx of cheaper imported beverages, which are exerting additional pressure on local volumes. These imports often undercut domestic products that are burdened by local taxation, further eroding Delta’s competitive edge. 

Delta’s regional operations in Zambia and South Africa continued to underperform, affected by currency instability, weak consumer demand, and operational disruptions. These factors contributed to the overall drag on the group’s performance, as the company struggled to stabilise revenues outside Zimbabwe. 

Despite the pressures, Delta remains focused on long-term growth. The company is pursuing plant modernisation and capacity expansion initiatives to improve efficiency and meet changing consumer needs. It is also looking to diversify its product offerings to better respond to market trends. 

“Our focus is on retaining market leadership while enhancing production efficiencies and exploring local and export opportunities,” said Chief Executive Officer Valela. 

Delta’s approach reflects a strategy to balance regulatory challenges with market resilience, investing in innovation and efficiency to drive sustainable growth in a competitive and evolving beverage landscape. 

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