DELTA Corporation Limited is on track to surpass US$1 billion in revenue by the 2026 financial year, a major milestone largely attributed to its recent consolidation of Schweppes Holdings Africa Limited, according to analyst projections.
The beverages giant increased its shareholding in Schweppes to 69% after acquiring an additional 20% stake on April 1.
The integration has already lifted group performance, helping drive a 32% surge in half-year revenue to US$514 million for the period ended September 30, 2025, setting the business up for a strong festive trading season.
In its latest report, FBC Securities forecast Delta will post revenue of US$1,02 billion and profit after tax (PAT) of US$141,03 million for the year ending March 31, 2026.
This would mark a solid jump from the 2024 comparative revenue of US$807,47 million and PAT of US$116,14 million.
“The consolidation of Schweppes Zimbabwe Limited, which contributed US$42,5 million in revenue and US$1,2 million in profit, has enhanced Delta’s scale, diversified its earnings base, and reinforced its distribution depth in the non-alcoholic beverages segment,” FBC Securities said.
“With 92% of sales denominated in USD, the company’s diversified beverage portfolio and prudent capital investment pipeline positions it for sustained earnings momentum, with FY2026 revenues projected to surpass US$1 billion.”
Reflecting its improved outlook, FBC Securities upgraded Delta’s intrinsic equity valuation to US$1,14 billion, or US$0,85 per share, up from US$0,74.
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The revision stems from higher free cash flow expectations on the back of recovering volumes, stronger dividend prospects and a lower cost of equity following improved currency and inflation stability under the ZiG regime.
IH Securities also issued an upbeat assessment, projecting stronger returns following the Schweppes consolidation.
“Taking into account overall projected volumes performance, flat pricing and the consolidation of Schweppes, we have revised our FY26 revenue forecast to US$1,16 billion,” the firm said.
On margins, IH Securities expects group lagers to underpin short-term performance while management works to address margin pressures in other segments.
It projects an earnings before interest, taxes, depreciation and amortisation margin of 20,9% for the current financial year.
Looking ahead, the firm said Delta’s strategic focus will remain on safeguarding the balance sheet, defending and expanding market share, and revitalising operations in regional markets.
