African Distillers posts ZWL$298.8 million loss in HY2020

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  • Down from net profit of ZWL$49.2m in SPLY
  • Revenue up 40% to ZWL$1.7bn
  • Declares interim dividend of ZWL$50 cents per share

HARARE – ZSE-listed wines and spirits manufacturer African Distillers Limited (AFDS) on Tuesday posted an inflationary adjusted net loss after tax of ZWL$298.8 million for the half-year ended 31 December 2020. This compares to a net profit of ZWL$49.2 million recorded in the same period in 2019.

The results confirm a volatile environment created by the coronavirus (COVID-19) pandemic.

Despite the ZWL$298.8 million net loss, the Delta-owned liquor manufacturer delivered revenue of ZWL$1.7 billion, up 40% in inflationary adjusted terms from ZWL$1.2 billion recorded in the previous comparative year.

AFDS chairperson Pearson Gowero said the company will continue to focus on exploring revenue growth opportunities, efficient conversion of cash resources into raw materials, and cost containment.

“This will ensure business viability and profitability,” said Mr Gowero.

Volume grew by 39% from prior period attributed to spirits and ciders which grew by 57% and 33% respectively.

However, wines registered a 22% decline with the company citing reduced activity in the restaurant and hotel channel compounded by supply disruptions due to COVID-19 restrictions.

AFDS will pay an interim dividend of ZWL$50 cents per share amounting to ZWL$59,194,896.

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