Delta Corporation has surpassed the US$1 billion annual revenue mark for the first time after recording strong growth across its lager beer, sorghum beer and s...
Delta Corporation has surpassed the US$1 billion annual revenue mark for the first time after recording strong growth across its lager beer, sorghum beer and sparkling beverages businesses during the financial year ended March 2026.
The beverages giant reported revenue of more than US$1 billion, representing a 35 percent increase from the US$807 million recorded in the previous financial year.
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Profit before tax rose 56 percent to US$210 million, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased 42 percent to US$236 million.
Speaking during an analysts’ briefing in Harare, Delta group chief executive Matlhogonolo Valela said the milestone was the result of a long-term expansion strategy focused on volume growth, manufacturing investment and market penetration.
“We have been on a journey for the last five years to try and exceed US$1 billion, to try and exceed US$200 million in earnings before interest, tax, depreciation and amortisation,” Valela said.
“Across our three main categories — lagers, sorghum and sparkling beverages — we have had record volumes, and we have done so consistently over the last five years.”
Valela said the company’s strong revenue growth was also supported by an improved product mix and rising foreign currency sales, with 94 percent of domestic revenue now being generated in United States dollars compared to 80 percent in the prior year.
The lager beer segment emerged as one of the strongest performers during the year, with demand reportedly exceeding available supply in some markets.
“In the lager beer space, we have had stock-out situations, meaning that we have had a lot of demand, and we are investing behind that demand,” he said.
To address supply shortages, Delta imported premium beer brands from regional sister companies while accelerating expansion and optimisation programmes at its local breweries.
Major upgrades are currently underway at Belmont Brewery and Southerton Brewery, including installation of additional packaging lines, expansion of brewing and storage capacity, replacement of brewing equipment and upgrades to filtration systems.
Valela said the projects are expected to increase lager beer production capacity by between 30 percent and 35 percent by November this year.
The sorghum beer division also delivered record performances, with volumes rising 19 percent to 4.62 million hectolitres, surpassing the previous historical peak of 4.5 million hectolitres achieved in 1998.
Valela said the previous record had long been viewed internally as difficult to surpass because it was achieved during a period of heightened liquidity in Zimbabwe’s economy.
“In the sorghum beer space, we have had, in the past, a peak year in FY98 when volumes were flowing everywhere. This year, we have beaten that number that we have always said is not quite possible to achieve,” he said.
He attributed the growth to improved liquidity in rural and informal markets, supported by strong tobacco sales, mining activity, moderated pricing and aggressive marketing campaigns.
Unlike the lager beer segment, Valela said the sorghum beer business still had sufficient production capacity to accommodate future growth in demand.
Delta’s non-alcoholic beverages division also posted record growth, with sparkling beverages volumes increasing 14 percent during the year.
Total soft drinks volumes, including operations under Schweppes Holdings Africa Limited, rose 16 percent to 3.1 million hectolitres.
Valela said the performance was particularly significant given increased market competition and the impact of Zimbabwe’s sugar surtax.
“Our best years, even without competition, were about 1.6 million units. We are well over 2 million now,” he said.
“Competition is there, but our brand power has pulled us through.”
He said Delta absorbed a significant portion of the sugar surtax in order to maintain affordability and protect market share, supported by promotional campaigns such as Share A Coke.
However, Valela said the sugar tax continued to place pressure on company margins.
“It’s over US$30 million that we paid this year, but it can’t go on forever,” he said.
“We think the answer is in having regional parity on sugar tax so that competitive issues and affordability are addressed.”
Outside Zimbabwe, Delta’s South African operations under United National Breweries recorded a six percent recovery in volumes as the company expanded sales of Chibuku Super products into formal retail markets.
The company also recommissioned its KwaZulu-Natal brewery during the fourth quarter to reduce logistics costs and improve market coverage.
In Zambia, however, operations remained under pressure after National Breweries Zambia recorded a 27 percent decline in volumes due to electricity shortages and increasing illicit alcohol sales.
Valela said the company had seen some recent recovery in higher-margin “super variant” products despite the difficult environment.
To support future growth, Delta is preparing a capital expenditure programme worth more than US$120 million for the 2027 financial year, almost three times the US$43.9 million invested during the previous year.
The planned investment will focus on expanding brewing and malting capacity at Belmont Brewery, Southerton Brewery and Kwekwe operations.
“We are very clear that the ancillary associated processes in maltings are going to run out of capacity,” Valela said.
“We will drive that capex expansion of over US$100 million, but fast, to allow our cash flows.”
He added that advance payments for critical equipment had already been made and reflected as prepayments on the company’s balance sheet.
