• Zambian Breweries reported a net profit of ZMW 294.769 million (US$15.1 million) for 2025, reversing a ZMW 672.676 million loss in 2024
  • Revenue grew 14% to ZMW 6.113 billion (US$313.5 million), driven by targeted price adjustments, despite a slight decline in volumes
  • Operating profit increased to ZMW 1 billion from a ZMW 376 million loss in 2024, reflecting revenue growth and cost discipline

Lusaka— Zambian Breweries Plc has delivered a remarkable full-year recovery, posting a consolidated net profit of ZMW 294.769 million (≈US$15.1 million) for the year to December 2025, reversing a substantial ZMW 672.676 million (US$34.5 million) loss from 2024 according to its latest financial results.

This profitability shift, driven by a 14% revenue increase to ZMW 6.114 billion (US$313.5 million) despite a slight volume decline, highlights effective pricing strategies, cost management, and favourable currency dynamics in Zambia's post-drought economic rebound.

The audited results, announced on March 11, 2026, position Zambian Breweries as one of the standout in Southern Africa's beverage industry, where regional peers like Zimbabwe's Delta Corporation Limited (incorporating Schweppes Holdings Africa from April 2025 onward) have also shown strength.

While Zambian Breweries achieved a 54% gross profit surge through disciplined controls, Delta's full-year FY2025 (ended March 31, 2025) revenue grew more modestly at 5% to US$807.47 million, though profit after tax rose to US$116.15 million from US$100.54 million.

These outcomes reflect diverging market dynamics. Zambia's beverage sector benefited from copper-driven investments and stabilized inflation, while Zimbabwe leveraged agricultural improvements especially in tobacco and mineral prices but contended with policy shifts like sugar taxes impacting volumes.

Zambian Breweries' group revenue rose from ZMW 5.342 billion (≈US$273.9 million) in 2024, with company-level sales (excluding subsidiaries) climbing to ZMW 5.024 billion (≈US$257.7 million) from ZMW 4.580 billion (≈US$234.9 million). Gross profit expanded to ZMW 1.912 billion (≈US$98.0 million), as cost of goods sold increased only 2.4% to ZMW 4.202 billion (≈US$215.5 million), mitigated by Kwacha appreciation and below-inflation production costs.

Operating profit turned positive at ZMW 1.000 billion (≈US$51.3 million) from a ZMW 376 million (≈US$19.3 million) loss, despite moderate rises in administrative expenses to ZMW 696 million (≈US$35.7 million) and distribution costs to ZMW 310 million (≈US$15.9 million).

Finance costs rose 3% to ZMW 426 million (≈US$21.8 million), linked to facilities for a US$110 million (≈ZMW 2.145 billion) expansion project. Pre-tax profit reached ZMW 574 million (≈US$29.4 million), with a ZMW 279 million (≈US$14.3 million) tax expense, yielding earnings per share of ZMW 0.54 (≈US$0.028) versus a prior loss of ZMW 1.23 (≈US$0.063).

In comparison, Delta Corporation, Zimbabwe's leading beverage entity covering lager, sorghum beer, soft drinks, and spirits, reported full-year FY2025 revenue of US$807.47 million, up 5% from the prior year, with profit after tax at US$116.15 million (up 15.5% from US$100.54 million) and EPS of 8.79 US cents. Lager volumes grew 8% to 2.66 million hectolitres, sorghum beer rose 1% domestically, but sparkling beverages declined 4% due to sugar tax hikes.

Delta's acquisition of a 69% stake in Schweppes Holdings Africa effective April 1, 2025 (post-FY2025 close), positions it for further scale in subsequent periods, but FY2025 results exclude full Schweppes consolidation.

Zambian Breweries' superior gross margin expansion (54%) versus Delta's steadier 5% revenue growth shows tighter cost controls in Zambia's more import-dependent market, where Kwacha stability reduced raw material pressures. However, Delta's larger absolute figures and profit (US$116.15 million vs. US$15.1 million) reflect its market dominance and diversified portfolio in Zimbabwe's larger beverage ecosystem.

Market contexts diverge: Zambia's economy grew around 4% in 2025, fuelled by copper exports (40% of total) reaching record highs, mining investments, and infrastructure like solar and rail projects, supporting urban consumption in a 21 million population. Inflation eased to single digits, aiding affordability, though power outages and competition from globals like Coca-Cola persist.

Zimbabwe, with 6.6% projected growth in 2025 after a slowdown in 2024, benefited from improved agriculture post-El Niño and firming gold prices, but faced sugar tax distortions and import competition. Beverage demand favours affordable cores and premiumisation, with Delta's USD focus mitigating currency risks absent in Zambia's ZMW exposure.

No dividend was declared by Zambian Breweries to prioritize deleveraging and growth, akin to Delta's interim payouts. In the outlook, Zambian Breweries targets volume recovery and premiumisation, while Delta anticipates sustained demand but cautions on global frictions.

This snapshot illustrates Zambia's agile, efficiency-focused recovery versus Zimbabwe's scale-oriented, volume-driven model, with both poised for expansion amid regional urbanisation and economic vulnerabilities.

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