Delta FY2025: Higher Dividends, Stronger Balance Sheet in Tough Market

By ETimes

HARARE – DELTA Corporation (DLTA.ZW) capped off the 2025 financial year with a performance that will turn heads on Harare’s trading floor. Revenue climbed 5% year-on-year to US$807 million, driven by solid volume gains across its beverage portfolio and a modest price uptick in response to inflationary pressures.

On the profitability front, Delta’s after-tax earnings surged 15% to US$116.1 million, translating into earnings per share of 8.79 US cents—up from 7.71 US cents a year earlier. The company’s ability to convert operations into free cash remained strong, delivering US$99 million in operating cash flow, underscoring management’s disciplined cost controls and working-capital efficiencies.

Investors hunting for yield will welcome a 10% bump in Delta’s dividend, now at 3.30 US cents per share. That reflects the board’s confidence in sustained cash generation, even as the business navigates a tougher regulatory environment marked by higher sugar levies on its soft-drinks unit.

Balance-sheet strength stands out as another highlight: total borrowings fell to US$14.5 million from US$18.3 million, while cash balances of US$27.6 million leave Delta with a net-cash position. That scarce combination of growth, yield and financial flexibility positions Delta to weather Zimbabwe’s currency volatility and ongoing tax disputes—most notably a US$75 million assessment currently under litigation.

Net asset value per share climbed to 22.41 US cents, offering a comfortable cushion over current market prices and a reminder that, on a liquidation basis, shareholders have plenty of upside potential. With consumer demand holding firm and management demonstrating strategic agility—whether through price adjustments or cost management—Delta looks poised to deliver further shareholder value in 2026.

Key Takeaways for Investors

•             Top-line momentum: +5% revenue growth to US$807 million

•             Profit surge: +15% PAT to US$116.1 million; EPS at 8.79 US cents

•             Dividend lift: 3.30 US cents per share, +10% YoY

•             Balance-sheet health: Net-cash position with US$27.6 million in cash against US$14.5 million of debt

•             Watch factors: Currency fluctuations, sugar tax pressures, and resolution of the US$75 million tax dispute

Delta Corporation’s FY25 results offer a rare trifecta in Zimbabwe’s market: growth, income and balance-sheet resilience. While regulatory headwinds and macro volatility remain, the brewer-turned-beverage heavyweight is proving it can not only survive but thrive—making DLTA.ZW a pick in portfolios geared for both yield and capital appreciation.