Delta Crosses US$1 Billion Mark as Volumes Hit Historic Highs Amid Tax Battles

Delta Corporation  Limited has delivered the strongest financial performance in its recent history, crossing the US$1 billion revenue threshold for the first time as Zimbabwe’s largest beverages producer posted surging volumes, expanding profitability and record fiscal contributions despite mounting tax disputes and rising operating pressures.

The group’s revenue for the year ended March 31, 2026 climbed 35% to US$1.09 billion, underpinned not merely by inflation or currency shifts, but by robust underlying consumer demand across virtually every category in its portfolio.

The results cement Delta’s position not only as Zimbabwe’s dominant beverages company, but also as one of the country’s most strategically important taxpayers, manufacturers and formal-sector anchors.

“This is fundamentally an organic growth story,” said Delta Finance Director Alex Makamure during presentation of the group’s full-year results.

“Revenue crossed the US$1 billion mark for the first time in Delta’s history. The broader story is volume growth. Consumers are choosing our brands in greater numbers across every category.”

Perhaps the clearest symbol of Delta’s resurgence came from its traditional beer division, where Sorghum Beer Zimbabwe surpassed 4.6 million hectolitres, overtaking a production peak last achieved in 1998.

The milestone reflects the enduring strength of Chibuku Super, a brand deeply woven into Zimbabwe’s social and economic fabric.

In a market increasingly crowded by informal alcohol alternatives and illicit competition, Delta said the achievement demonstrated the resilience of formal manufacturing and the strength of long-established consumer trust.

“Chibuku Super is a proudly Zimbabwean brand, and consumers have supported it with their wallets,” Makamure said.

Both lager beer and sorghum beer volumes expanded 19%, reinforcing management’s argument that the business is experiencing genuine demand-led growth rather than accounting gains linked to currency dynamics.

Behind the figures lies a broader economic effect: higher agricultural demand for sorghum, stronger distribution networks, sustained manufacturing activity and thousands of livelihoods supported across the beverages value chain.

Soft Drinks Business Absorbs US$30 Million Tax Blow

Delta’s sparkling beverages division also recorded significant growth, with volumes rising 14%, while total non-alcoholic beverage volumes — including newly consolidated Schweppes Holdings Africa Limited (SHAL) — climbed 16% to 3.1 million hectolitres.

But the growth came at a substantial cost.

Delta disclosed it absorbed nearly US$30 million in sugar surtax costs in an effort to shield consumers from steep retail price increases amid weakening disposable incomes.

The decision highlights the increasingly delicate balancing act facing major manufacturers: preserving affordability while protecting margins in an economy characterised by taxation pressures, high input costs and fragile consumer spending.

“The sugar content surtax remains above regional benchmarks,” Makamure warned.

“In our view, that may push some consumers toward unregulated, untaxed alternatives, which would not be positive for the fiscal base or for local producers.”

The consolidation of SHAL added US$101 million in topline revenue while significantly improving operational performance and product availability.

New product introductions, including Appletiser and Powerade, alongside the relaunch of Minute Maid Pulpy Orange, signalled Delta’s broader strategy of portfolio diversification and premiumisation.

Afdis Delivers Explosive Growth

Delta’s associate, , emerged as one of the standout performers of the year after recording 50% volume growth.

Ready-to-drink beverages surged 62%, wines jumped 57%, while spirits volumes increased 34%.

Management credited the localisation of cider production as a strategic turning point that strengthened margins, reduced borrowings and improved competitiveness against imports and grey-market products.

The localisation drive also reinforced Delta’s broader industrialisation narrative: domestic production retaining value, tax revenue and jobs within Zimbabwe’s economy.

Profitability Accelerates

The strong volume momentum translated into sharply higher profitability.

EBITDA rose 42% to US$236 million while profit before tax jumped 56% to US$210 million.

Earnings per share increased 35% to US11.44 cents.

Dividends climbed 52%, while shareholders’ equity closed the year at US$394 million.

Yet even amid record profitability, management warned that Zimbabwe’s complex tax and currency framework continues to distort corporate accounting realities.

Delta’s effective tax rate reached 27.6%, above the statutory benchmark, partly due to historical depreciation allowances linked to assets acquired in Zimbabwe dollars during periods of currency instability.

Those allowances, once meaningful, have effectively been eroded in US dollar terms.

US$306 Million Paid to Treasury

Beyond shareholder returns, Delta’s results underscored its central importance to Zimbabwe’s fiscus.

The group paid more than US$306 million in taxes during the financial year — a 37% increase from the prior year.

The payments included excise duty, sugar surtax, corporate income tax, VAT and PAYE.

“As the business grows, its fiscal contribution also grows,” Makamure said.

The statement reflects an increasingly important policy debate within Zimbabwe’s economy: whether aggressive taxation on formal manufacturers ultimately strengthens or weakens long-term revenue collection.

Delta argues that excessive surtaxes risk driving consumers into informal markets, undermining both public revenue and regulated industry sustainability.

ZIMRA Dispute Casts Long Shadow

Despite the record performance, a major cloud still hangs over Delta’s balance sheet.

The Zimbabwe Revenue Authority’s cumulative assessments against Delta and Afdis have now escalated to approximately US$97 million, up from US$73 million previously.

The additional US$24 million largely relates to the disputed 2021 tax year, a period marked by severe currency instability and shifting monetary regulations.

Delta insists the assessments rely on retrospective interpretations of legislation and fail to adequately recognise taxes already paid in the legal tender of the day.

The group has already paid US$18.7 million under Zimbabwe’s “pay now, argue later” tax framework while contesting the matter through both the courts and negotiations with authorities.

Importantly, the dispute is not unique to Delta.

Several listed corporates and mining houses have raised similar concerns over retrospective tax assessments tied to Zimbabwe’s turbulent currency transition between 2019 and 2021.