HARARE – Delta Corporation has consistently demonstrated robust financial performance, achieving annual revenues exceeding $500 million from 2013 to 2018, with earnings before interest and taxes (EBIT) averaging $110 million annually.
Notably, in the past two years, EBIT has increased to an average of $126 million annually. Despite a recent $54 million tax dispute loss, analysts remain confident in the company’s financial resilience. “This tax dispute should not significantly impact Delta’s overall earnings,” stated a company spokesperson.
In a related development, Delta Corporation Limited has experienced a notable surge in its market capitalization. Since June 12, 2024, when Sylvester Mupanduki of SMRI Institute issued a valuation opinion and revenue growth forecast, the company’s market capitalization has increased by 45%.
However, Mupanduki maintains that Delta’s stock remains undervalued. “Even with the impressive rise in market capitalization, our valuation indicates a 13% margin of safety,” he stated.
Delta Beverages’ consistent performance and strong market position set it apart from local competitors. National Breweries Limited, for example, has struggled to maintain steady revenue growth, with recent figures showing a decline in market share.
“National Breweries faces significant challenges in matching Delta’s operational efficiency and market penetration,” noted an industry analyst.
Meanwhile, Varun Beverages has shown some promise with new product launches and marketing strategies, yet it still lags behind Delta in terms of overall market impact.
“Varun’s aggressive marketing has gained traction, but it will take a sustained effort to rival Delta’s established brand loyalty,” commented a market observer.
Delta Beverages continues to be a dominant player in the market, demonstrating resilience and growth potential despite facing significant financial challenges. Its strong performance, contrasted with the struggles of local competitors, underscores Delta’s strategic advantage in the beverage industry.