Delta Corporation lifts half-year operating income 13% to US$112.2 million
Zimbabwe's largest beverage maker says domestic lager, sorghum beer and spirits volumes drove the gain, while a US$97 million tax claim hangs over the group.
Delta Corporation, Zimbabwe's largest beverage company, has posted operating income of US$112.2 million for the half year, up 13% from US$99.6 million a year earlier. Group revenue rose 18% to US$607.5 million over the six months to September 30.
Volume growth came from domestic lager, sorghum beer and spirits, with lager up 13% to 1.75 million hectolitres and Chibuku Super sales rising 27%. The company credited relative exchange rate stability, mining activity, diaspora remittances and liquidity from the agricultural marketing season, and said 97% of its revenue now comes from domestic foreign currency sales. The board declared an interim dividend of US$2.40 per share, a 20% increase.
Delta is contesting a US$97 million tax assessment from the Zimbabwe Revenue Authority covering 2019 to 2024, which the company says would have a material impact if upheld. It named economic policy stability and a review of the sugar tax as its priorities for the year.