HARARE – Delta Corporation recorded a strong volume growth in its trading update for the first quarter  for the period which ended  30 June 2026 across its Zimbabwe operations despite mounting production costs. The total group beverage volume rose by 14% to approximately 3.4 million hectolitres for the quarter. 

The total revenue saw a 23% increase in first-quarter to US$294.6 million for the quarter which has just ended period. The performance was underpinned by a stable ZiG currency, low inflation, improved agricultural output, firm mineral prices, tobacco marketing proceeds and diaspora remittances, all of which supported consumer spending during the quarter.

Lager beer volumes increased by 17 percent, while sorghum beer volumes in Zimbabwe grew 20 percent, led by a 30 percent rise in Chibuku Super sales. Delta also reported that its newly launched Leopard Extra brand continued to gain market acceptance as distribution expanded. Non-alcoholic beverages posted combined growth of 14 percent, with Schweppes volumes surging 37 percent, while African Distillers recorded a 43 percent increase in sales volumes across its wines and spirits portfolio.

However, the company warned that profitability remained under pressure from rising fuel prices, freight costs, PET packaging expenses, imported raw material costs and the sugar tax on soft drinks. Delta revealed that it accrued US$7.3 million in sugar tax during the quarter and continues to engage Government on reviewing the tax regime, arguing that it places locally produced beverages at a competitive disadvantage against imported products.

Looking ahead, Delta expects strong trading momentum to continue during the second quarter, supported by currency stability, favourable macroeconomic conditions and ongoing investments to expand brewing, packaging and logistics capacity. The company said completing these capital projects will be critical in reducing supply shortages and meeting growing demand across its beverage portfolio.

The phased capacity-expansion programme remains on track, with upgrades at Southerton Brewery expected to begin releasing additional throughput from the third quarter, ahead of the larger Belmont Brewery expansion where the replacement brewhouse and additional packaging line remain in progress. Complementary investments in returnable glass, packaging materials, crates and logistics capability are being implemented to meet anticipated demand and progressively close supply gaps by November 2026, the company said.