- Delta recorded a 25% year-on-year revenue increase in Q1 2025, driven by strong volume growth across all categories
- Lager beer volumes hit record highs for winter, rising 19% due to improved consumer incomes and stable pricing
- The consolidation of Schweppes and growth in Afdis volumes further boosted performance, while over 85% of sales were in USD, cushioning inflation risks
Harare- Delta Corporation, Zimbabwe’s largest beverage manufacturer has recorded a 25% year on year increase in revenue for the first quarter ended 30 June 2025 according to its latest update.
The growth was buoyed by strong volume growth across all categories and the consolidation of Schweppes into the group’s portfolio.
‘’This reflects the volume growth in the alcoholic beverage businesses in Zimbabwe and the inclusion of Schweppes as a subsidiary,’’the group said .
Over 85% of local sales were conducted in foreign currency, providing a critical buffer against local currency volatility and inflationary pressures.
The revenue performance was anchored by notable gains in lager beer volumes, which surged 19% over the comparable period last year setting new records for winter sales,f attributed to improved consumer incomes and stable retail pricing.
Sorghum beer, led by the Chibuku Super brand, recorded an 11% growth in volumes, despite regulatory bottlenecks around liquor licensing and tax-related market disruptions.
Afdis, a Delta subsidiary recorded a 40% increase in volumes while Ready-to-Drink beverages rose 45%, spirits climbed 36%, whilec wine volumes were up 25%, aided by affordability and a shrinking informal sector.
The relaunch of Shumba Maheu also proved strategic, tripling its volume attributed to enhanced flavours and competitive pricing.
However, not all segments fared equally, sparkling beverages gained out a modest 2% growth, held back by aggressive competition from unregulated sweetener-based drinks and imported alternatives.
The segment also absorbed a US$4.5 million sugar tax, which eroded margins despite a rate reduction in January 2025 and a marginal tax exchange rate.
Meanwhile, Nampak Zimbabwe, the packaging unit, saw volumes decline amid intensifying competition and erratic power supply.
Delta struck a tone of measured optimism, pointing to macroeconomic stability particularly a steady exchange rate and narrowing parallel market premiums as a basis for confidence moving forward.
The Zimbabwean dollar (ZiG) depreciated by only 4.3% over the first half of 2025, closing the period at 26.95 per U.S. dollar.
This relative stability is due to the Reserve Bank of Zimbabwe’s tightening money supply and the increasing distinction between fiscal and monetary policy operations.
However, the feasibility of continued exchange rate stability is under increasing scrutiny.
With the government now entering a capital-intensive second half of the year marked by the rollout of the Presidential Input Scheme and large scale road rehabilitation programs there is growing concern over the potential inflationary impact of quasi-fiscal expenditure.
Both initiatives are likely to require expanded public spending, which in the absence of commensurate revenue, could lead to increased money supply and pressure on the exchange rate.
The Presidential Input Scheme, which subsidizes seed and fertilizer for the upcoming summer cropping season, has historically been funded through off-budget financing.
Similarly, the roadworks already underway in several provinces are expected to strain the fiscus, raising questions about whether the RBZ can maintain its current monetary restraint.
Macroeconomic indicators appear stable on the surface but structural vulnerabilities remain. A sustained separation of Treasury and RBZ functions will be critical in avoiding a repeat of past cycles where government stimulus triggered rapid depreciation and inflation.
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