. . . but warns sugar tax and ZIMRA disputes threaten gains
By Jonathan Mbiriyamveka
HARARE – Delta Corporation has crossed the US$1 billion revenue mark for the first time in its history, driven by organic volume growth across every category.
But the beverages giant has warned that an onerous sugar surtax and escalating tax disputes with ZIMRA could undermine future gains.
Revenue for the year ending 2026 rose 35% to US$1.09 billion, or 23% excluding the newly consolidated Schweppes.
Lager beer and sorghum beer each delivered 19% volume growth, which Delta said reflected genuine underlying demand rather than a currency effect.
Delta Corporation’s Chief Financial Officer Mr Alex Makamure and Chief Executive Officer Matlhogonolo Valela
Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 42% to US236 million, while profit before tax surged 56% to 236million. Attributable earnings per share grew 35% to US 11.44 cents.
Despite the strong performance, Delta struck a cautious note on two fronts.
First, the company absorbed approximately US$30 million in sugar surtax on sparkling beverages rather than passing the full burden onto consumers.
While sparkling beverages volumes still grew 14%, Delta warned that the sugar content surtax remains above regional benchmarks.
“In our view, that may push some consumers toward unregulated, untaxed alternatives, which would not be positive for the fiscal base or for local producers,” the company said.
Second, Delta faces cumulative retrospective tax assessments from ZIMRA of about US97 million, up from US73 million the previous year.
The additional US$24 million relates mainly to the 2021 year of assessment, which remains under review.
Delta disputes the methodology used, arguing that a turnover-ratio method was not expressly provided for in the law at the time.
The company has already paid US$18.7 million under a “pay now, argue later” arrangement and is contesting the assessments through both the courts and amicable engagement with ZIMRA.
The dispute is far from isolated. Several major listed entities and mining companies have flagged similar retrospective assessments, pointing to a systemic challenge rooted in Zimbabwe’s complex currency transitions between 2019 and 2021.
Delta’s message to fiscal authorities was straightforward: align legislation to remove ambiguities, recognise taxes paid in legal tender at the time, and review the sugar surtax to support the long-term health of the category.
Shareholders’ equity stood at US$394 million, and dividends increased by 52%.
However, Delta noted it had also absorbed part of the VAT increase introduced in January 2026, as well as higher fuel and PET resin costs linked to the Middle East conflict, with limited room for further price increases.
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