- Good volume-driven performance by all product offerings
- Introduction of Gold Blend Number 9 boosted spirits volumes
- Revenue increased by 38%
HARARE – African Distillers Limited (AFDIS), which manufactures, distributes and markets branded wines, spirits and ciders for the Zimbabwean market has seen a positive start to the 2022 financial year underpinned by volumes growth across its product offerings.
A trading update for the first quarter ended 30 June 2021 (Q1’FY 2022) released on Monday shows a volume growth of 56% over the same period last year owing to improved access to the market.
Spirit volume grew by 17% over prior year benefiting from the good performance of brown spirits.
The Company specifically pointed out the widespread market acceptance of the newly introduced Gold Blend Number 9 as a key contributor to this growth.
Meanwhile, despite the continuous influx of cheap and illicit spirits in small packs from several producers in the market, wines and Ready to Drink (RTD) volumes grew 113% and 116% respectively, riding on improved availability in the quarter.
As a result, revenue for the period under review increased by 38% in real terms due to the firm demand for the company’s products.
On the outlook, the Company says that Government policies will play a pivotal role in its performance.
“Management will continue to focus on market share growth, profitability, innovation, and cost management to enhance shareholder value,” the company said.
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