Delta Corporation Limited (Delta) reported a record US$1.09 billion revenue for the full year ended 31 March 2026, up 35 percent over prior year, while profit before tax surged 56 percent to US$210 million in the period.
“The growth was…driven by an improved product and pricing mix,” group chairman Todd Moyo said.
During the period, operating income stood at US$209 million—an increase of 42 percent over the prior year—which Moyo said indicated strong volume performance, improved price mix, and fixed cost leverage.
He said the proportion of domestic sales denominated in foreign currency was 94 percent for the full year, up from 80 percent in the prior year.
EBITDA went up 42 percent to US$236 million.
The improvement in trading margins, Moyo added, was supported by lower cereals and packaging material costs and positive currency movements, partially offset by the under-recovery on the sugar surtax.
The full year sugar tax equivalent was approximately US$30 million. Notwithstanding these reductions, the sugar tax burden remains disproportionately high relative to earnings performance.
The effective tax rate was 27.6 percent for the year, elevated due to the multi-currency distortions on capital allowances.
Attributable earnings per share increased 35 percent to US 11.44 cents.
The group paid US$306 million-plus in taxes in Zimbabwe during the year, an increase of 37 percent over prior year.
Its balance sheet strengthened significantly during the year, with shareholders’ equity at US$394 million at the reporting date
“The net funding position at 31 March 2026 was US$40,5 million, reflecting strong cash generation from operations,” the board chair said.
Moyo said: “US dollar weakness during the period presented both opportunities and risks; higher import costs from Rand and Euro denominated markets and firmer commodity prices on certain packaging materials were offset by improved foreign currency inflows supported by stronger mineral prices.”
Regional subsidiaries – United National Breweries (UNB) South Africa and National Breweries Zambia (Natbrew) – recorded losses for the year, reflecting the operational challenges in their respective markets.
“UNB moved progressively closer to breakeven during the year, supported by ongoing operational streamlining and enhanced route-to-market execution,” Moyo said, adding that “Natbrew continues its recovery trajectory.”
The Group’s capital investment programme continued throughout the year, targeting manufacturing capacity expansion and equipment upgrades.
Since consolidation, Schweppes Holdings Africa Limited (SHAL) – in which Delta increased its shareholding from 49 percent to 69 percent with effect from 1 April 2025 – contributed revenue of US$101 million to the group results for the full year.
Going forward, Moyo said “the positive economic outlook, underpinned by improved agricultural outputs, firm commodity prices and the continued flow of diaspora remittances, presents an opportunity for group entities to invest ahead of demand.”
He, however, said “geopolitical developments – including ongoing international trade policy uncertainty, Middle East tensions and the impact of global tariff disputes – may place upward pressure on certain input and logistics costs and could disrupt the current momentum”.
In response, Moyo said the group initiated and is accelerating critical capacity expansion projects to support elevated sales rates achieved during the year, notably the Belmont brewhouse and packaging line and brewing capacity upgrades at Southerton Brewery.