Delta Corporation has reported a resilient trading performance for the third quarter ended 31 December 2025, supported by a stable operating environment across Zimbabwe, South Africa and Zambia. The Group said macroeconomic stability, firm consumer demand and strategic brand investments underpinned volume and revenue growth, despite ongoing cost pressures, tax challenges and infrastructure constraints in some markets.
In Zimbabwe, the operating environment was largely favourable, characterized by a stable ZIG exchange rate and low inflation. Consumer spending remained firm, buoyed by strong mineral prices, increased mining activity and improved agricultural output. Diaspora remittances also rose, supported by stronger exchange rates in key source markets such as South Africa and the United Kingdom. While currency stability provided some protection against informal imports, it also increased the cost of imported materials and capital projects.
The improved currency environment enabled the Group to reinstate festive season promotions, consumer activations and marketing campaigns. Major events such as Castle Lager Braai Day, the Chibuku Road to Fame Finals, the Chibuku Super Cup and the Coca Cola Food Fest boosted beverage consumption and strengthened brand visibility. However, growth in the informal sector, new tax and liquor licensing regulations and route-to-market disruptions continued to challenge formal retail and FMCG channels.
Lager beer volumes grew by 16 percent for the quarter and 19 percent for the nine months, exceeding historical sales levels. Sorghum beer volumes in Zimbabwe rose by 21 percent for the quarter, driven by strong Chibuku brand activations and cultural sponsorships. Sparkling beverages recorded 18 percent quarterly growth, supported by moderated pricing and the popular Share A Coke campaign. The Maheu category delivered exceptional growth following the successful relaunch of Shumba Maheu, while wines and spirits, led by African Distillers, posted robust volume increases across all segments.
Schweppes Holdings Africa also recorded strong gains following its consolidation as a subsidiary in April 2025, while Nampak Zimbabwe faced pressure from power cuts and competition. Regionally, South Africa showed modest recovery, supported by lower fuel prices and interest rate cuts, while Zambia benefited from improved mining activity and electricity generation, although challenges remained.
Group revenue increased by 37 percent for the quarter and 31 percent year to date. More than 85 percent of domestic sales were conducted in foreign currency. The Group also highlighted ongoing engagement with ZIMRA over foreign currency tax assessments amounting to US$73 million, noting that discussions and legal processes are still underway.
Looking ahead, Delta said it remains focused on capacity expansion, sustainability initiatives and responsible consumption campaigns, while positioning the business to capitalize on improving consumer spending across its markets.
