- African Distillers recorded a 15% volume growth for the financial year ending 31 March 2025
- The growth resulted from a strategic shift to independent retailers and strong demand for its product portfolio
- Revenue increased by 15%, reaching US$59.7 million, up from US$51.8 million
Harare-The Zimbabwe Stock Exchange-listed wine and spirits manufacturer, African Distillers (Afdis), has recorded a 15% volume growth for the financial year ended 31 March 2025, according to its latest financial statements.
This stemmed from the company’s strategic pivot to independent retailers and strong demand across its product portfolio.
‘’ The ongoing shift of the route to market to the independent trade played a pivotal role in driving volumes in view of the challenges faced by the formal retail chains,’’ company’s Chairperson Matlhogonolo Valela said.
The success of innovative RTD launches, the NightSky Gin and Tonic and Hunters 660ml, catered to younger consumers seeking convenience and variety, while rigorous Recommended Retail Price (RRP) compliance ensured consistent pricing, fostering consumer trust and enhancing market penetration.
Wines surged by 29%, ready-to-drink (RTD) products rose by 21%, and spirits grew by 7%.
This led to an increase in revenue by 15% to US$59.7 million from US$51.8 million.
Profit was at US$5.1 million a slight decrease from US$7.6 million in the prior year.
A key factor in Afdis’s success was its strategic shift toward independent retailers, which proved more resilient than formal retail chains grappling with liquidity and pricing challenges.
A shift to independent retailers has provided much-needed solace for African Distillers (Afdis), as these informal retailers sell in USD and purchase in USD, offering essential foreign currency to the company.
In contrast, formal retailers primarily transact in local currency, which is currently overvalued. This disparity impacts the financial dynamics for suppliers, as they benefit more from USD sales than from local currency sales.
The cash-based nature of informal retail allows tuckshops to settle payments at the point of sale, making transactions more straightforward and immediate compared to formal retailers, who often delay payments and deal in an overvalued currency.
However the government’s third-quarter 2024 crackdown on illegal imports and counterfeit goods bolstered formal sector demand by curbing informal trade, stabilising prices, and enabling Afdis to capture market share.
Looking ahead, ‘’ Management remains focused on identifying opportunities for expanding market share, increasing revenue, and increasing profitability, anchored on product innovation, production efficiencies and cost containment,’’
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