Strong demand spur Afdis’ revenue

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    Harare – Zimbabwe Stock Exchange-listed alcoholic beverage maker, African Distillers Limited (Afdis) revenue for the year ended June 30, 2018 increased by 23 percent to $30.6 million from $24.9 million in the prior year on the back of volume growth, margin expansion, favourable mix and cost containment.
    During the period under review operating income rose by 75 percent to $7.1 million from $4 million last year.
    Afdis Chairman Pearson Gowero said the Company recorded a strong performance, notwithstanding supply constraints that emanated from severe foreign currency shortages.
    “Demand for the Company’s products remained buoyant especially in the latter half. The Company was however not able to fully meet demand.
    “Ready-To Drink (RTD) volumes, driven by Ciders, grew ahead of all other categories, registering a 23 percent increase on prior year. Spirits continued to contribute the most revenue,” he said.
    The Company registered a foreign exchange gain of $0.3 million due to the weakening South African Rand and Interest expense of $0.56 million was incurred on overdue foreign payment.
    Gowero said the impact was however, mitigated by interest income of $0.4 million realised from money market investments.
    Net cash and investments for the period are at $20.3 million, a $12.8 million increase on prior year, mainly due to the delays in the settlement of foreign obligations.
    Going forward Gowero said, “We look forward to an improved macro-economic environment post elections and a resolution of the current foreign currency shortages. Management will continue to focus on growing the business and keeping the market well supplied.
    During the period, the Board recommended a final dividend of 1.10 cents per share, resulting in a total dividend of 1.50 cents per share for the year, amounting to $1 748 057.87.
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