• Revenue surpasses $200 million , despite over $20 million in sugar tax 
• Sorghum beer segment suffered both locally and regionally
• Foreign currency sales decreased by 11 percentage points

DELTA Corporation , the leading beverage manufacture has posted an increase in revenue to $389.1 million for the half year ended September 2024 from US$350.6 last year.

This led to a profit after tax almost doubling from US$22 million to US$41 million.

This growth was primarily driven by volumes growth across all segments except the sorghum beer which was heavily affected by drought, blackouts and competition both locally and regionally.

Sparkling beverages and lager beers saw a 10% and 9% increase while wines and spirits recorded an 11% growth offsetting losses in sorghum.

During the half-year period, the sorghum beer segment recorded volumes decrease locally and abroad while paying 20.5 million in sugar taxes which strained the margins.

This manifested in the decrease in operating profit from US$73 million to US$64 million.

‘’The Lager beer volume grew by 9 percent over prior year for the half year as demand remained firm and benefitted from the consistent supply of brands and packs," said Delta Chairperson, Sternford Moyo.

The proportion of domestic sales undertaken in foreign currency declined from an average of 88% in the prior year to around 77% in the period under review.

This shift is largely attributed to the introduction of the ZiG currency, strict enforcement of dual pricing regulations, and increased sales to the formal retail sector.

Going forward the group remains pessimistic in the beverages sector which is being affected by the sugar tax, the restrictions on the route to market and the strict enforcement of the use of official exchange rates for retail price determination.

“There is no clarity on whether Government will adopt the recommendations to refine the tax policies that impact competitiveness and viability, such as the sugar tax and route to market regulations.”

 ‘’Expanding access to foreign currency through banking channels could also enhance the operating environment and support greater economic resilience’’