Delta Corporation Limited says it projects enhanced business prospects on the back of expected strong consumer spending, driven by a stable ZiG currency, good tobacco harvest, firm mineral prices and growing diaspora remittances.
The group indicated that it saw significant benefits from a relatively stable operating environment during the group’s first quarter to June 2025.
A stable ZiG exchange rate played a crucial role in boosting consumer confidence and spending power, which allowed consumers to plan and spend with more certainty.
The record-breaking tobacco marketing season has also been a major contributor to the positive operating environment, as substantial revenue injected into the economy has increased disposable income for farmers and related stakeholders, further boosting consumer spending.
Additionally, increased mining activity, driven by favourable mineral prices, particularly gold, has enhanced the profitability of mining operations, leading to increased production and employment.
Diaspora remittances have also benefited from the strengthening of cross-exchange rates, particularly against the Rand and Pound, which are key source markets.
According to Delta, these factors have combined to create a strong foundation for consumer spending, driving growth and stability in the operating environment.
Consequently, this led to the group’s revenue increasing by 25 percent in the quarter compared to the previous year, driven by volume growth.
The Group’s operating margins benefited from economies of scale due to volume growth and reduced grain costs.
However, the sugar tax burden was significant, as the Group incurred US$6,7 million in the quarter, disproportionate to its business revenue.
Over 85 percent of domestic sales were conducted in foreign currency during the quarter.
“The Group is benefiting from a relatively stable operating environment witnessed in the quarter under review. There are signs of strong consumer spending driven by a stable ZiG exchange rate, the record-breaking tobacco marketing season, increased mining activity and firm mineral prices.
“The economy is benefiting from the improved cereals and tobacco outputs and the higher gold prices in 2025. Diaspora remittances are benefiting from the firming cross exchange rates such as the Rand and Pound, our key source markets,” said Delta Group company secretary Faith Musinga in the first quarter trading update to June 2025.
In the period under review, Lager beer volume increased by 19 percent compared to the previous year, driven by strong demand which stemmed from rising consumer incomes and stable pricing.
The business exceeded historical volume and daily sales rates for the winter months.
Source: Thezimbabwemail
