Online Reporter
Nelson Gahadza-Business Reporter
Delta Corporation has recorded a strong start to its 2027 financial year after first-quarter beverage volumes grew by 14 percent to approximately 3,4 million hectolitres, pushing revenue 23 percent higher to US$294,6 million for the three months ended June 30, 2026.
According to the beverage maker’s trading update for the review period, the robust performance was underpinned by strong demand across the Zimbabwean business units, excluding regional subsidiaries, where beverage volumes grew by 18 percent, supported by stable pricing, improving consumer incomes, currency stability and continued investment in production capacity.
Group revenue increased from US$238,6 million recorded during the comparable period last year, reflecting higher sales volumes, an improved product mix and limited price adjustments in the sparkling beverages business.
The company noted that more than 90 percent of domestic sales were transacted in foreign currency during the quarter.
The trading update shows that lager beer remained the group’s biggest growth driver, with volumes increasing 17 percent from the prior-year period as mainstream brands maintained strong momentum while local premium brands, including Zambezi, benefited from improved product availability.
Premium international brands and flavoured alcoholic beverages also posted strong growth from a relatively low base, aided by improved supply and competitive pricing.
“Demand, however, continued to outstrip production capacity in some brands and pack formats, prompting Delta to supplement local supplies with selected imports from regional sister companies,” reads part of the trading update.
In that regard, the company said its brewery expansion programme remained on schedule, with upgrades at Southerton Brewery expected to begin releasing additional production capacity in the third quarter, ahead of the larger expansion project at Belmont Brewery.
During the period under review, traditional sorghum beer also delivered a strong performance, with Zimbabwe volumes rising 20 percent, driven by a 30 percent increase in Chibuku Super volumes.
Delta attributed the growth to firm consumer demand, stable pricing, liquidity generated from the mining and tobacco sectors, consistent product availability and sustained consumer preference for its brands.
The group said the recently introduced Leopard Extra brand continued to gain market acceptance as distribution and promotional activities expanded.
Delta’s non-alcoholic beverages portfolio recorded combined volume growth of 14 percent, with sparkling drinks increasing by 7 percent despite price increases implemented following the January 2026 value added tax (VAT) adjustment and higher fuel and packaging costs.
The company said the business continued to face pressure from the sugar tax, rising polyethylene terephthalate (PET) packaging costs, fuel price increases and intermittent shortages of bottler-grade sugar.
It warned that the sugar tax continued to erode the competitiveness of locally manufactured soft drinks against imported products entering the market without a similar fiscal burden.
The wines and spirits business, African Distillers, delivered one of the strongest performances during the quarter, with volumes surging 43 percent on the back of stable exchange rates, improved product availability, stronger consumer spending and reduced grey market activity.
Growth was recorded across all product categories, with ready-to-drink beverages increasing 48 percent, wines rising 80 percent in the affordable segment and spirits growing 32 percent, led by Star Brandy.
The business said it is investing in additional packaging capacity scheduled for commissioning during the third quarter to address supply constraints.
