Delta Corporation reports 1% revenue growth in Q3 2024 amid economic challenges 

ZIMBABWE – Delta Corporation, Zimbabwe’s largest beverage producer, has reported a 1 percent rise in revenue for the third quarter ending December 31, 2024, despite navigating a challenging economic environment characterized by utility disruptions and varying consumer spending patterns. 

In a trading update, Delta highlighted the resilience of consumer demand across all categories during the summer peak season, even as the introduction of a sugar content surtax in January 2024 necessitated significant price increases for soft drinks and cordials.  

The company noted that the surtax negatively impacted price competitiveness, fueling an influx of smuggled and imported products from the region. 

“Consumer spending remained resilient, benefitting from mining activities, government infrastructure projects, and diaspora remittances,” the company said. 

During the quarter, the sugar tax prompted price adjustments that partially drove revenue growth in soft drinks. Delta reported paying US$31.2 million in sugar tax between February and December 2024 on sparkling beverages and cordials. 

The lager beer segment saw a 4 percent growth in volume during the quarter and a 7 percent increase for the nine months.  

While the business faced prolonged water and power outages, investments in production capacity and glass supplies ensured adequate product availability. 

Domestic sorghum beer volumes in Zimbabwe rose by 2 percent during the quarter but declined by 2 percent over the nine months due to adverse factors, including drought, reduced disposable incomes in rural areas, and challenges in the retail and wholesale distribution network.  

Overall volume declined by 8 percent for the quarter and 10 percent for the nine months, primarily attributed to the cessation of exports. 

In the sparkling beverages segment, volumes dropped by 16 percent during the quarter and 1 percent over the nine months. Delta attributed this decline to sugar tax-induced price increases and a surge in regional imports. 

Schweppes Holdings Africa Limited, a Delta subsidiary, reported significant volume declines of 27 percent for the quarter and 17 percent for the nine months. These reductions were driven by sharp price hikes resulting from the sugar tax. 

Meanwhile, Delta’s packaging partner, Nampak Zimbabwe, recorded a 25 percent drop in volume for the quarter due to the lower 2024 tobacco crop, power outages, equipment breakdowns, and intensified competition. 

Delta also disclosed its ongoing dispute with the Zimbabwe Revenue Authority (ZIMRA) regarding tax assessments totaling US$73 million, including penalties and interest, covering the period from 2019 to 2022.  

Looking ahead, Delta remains focused on activities that generate aggregate demand while positioning the business for long-term growth. 

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