Delta Corporation reports sugar levy impact despite revenue growth

Delta says the sugar levy keeps biting, squeezing margins even as sales climb and the government counts health cash.

Sugar tax pressure

• Delta Corporation is talking with the Zim government over the levy.
• Profits, demand, and supply chains feel the drag.
• The tax targets sugary beverages.

Why the tax exists

• It funds fights against diabetes, cancer, and obesity.
• The Zimbabwe Treasury collected over US$25 million from early 2024 to mid-2025.
• Money bought cancer treatment machines.

How the levy works

• The rate is US$0.001 per gram of added sugar.
• It hits ready drinks and concentrates.
• Cordials got a lower rate from January 1, 2025.

Delta’s numbers snapshot

• Half-year revenue reached US$514 million.
• Growth hit 32 percent year over year.
• Schweppes consolidation boosted totals.

Margins and trade-offs

• Sparkling drink prices were softened to keep volumes.
• That move soaked part of the sugar charge.
• Lower cereal and packaging costs helped.
• Tax under-recovery erased those gains.