Afdis records $7,1m profit

HARARE - African Distillers (Afdis) says its profit for the six months to December 31, 2018 increased by 157 percent to $7,1 million compared to $2,7 million registered in the 2017 corresponding period, largely driven by firm demand across all product categories.

Pearson Gowero, the company’s chairperson, said despite firm demand the company could not meet market demand due to lack of raw materials.

“The company continues to enjoy growth in volumes, revenues and profits despite deteriorating macro-economic conditions. 
“Demand remained firm, but could not be fully satisfied due to severe foreign currency shortages,” he said.
Gowero noted that during the period under review, sales volume increased 40 percent compared to prior year with ready to drink (RTDs) achieving a 55 percent growth followed by spirits at 25 percent and wines at 22 percent.
“Spirits continue to dominate revenue contribution accounting for 61 percent followed by RTDs at 29 percent and wines contributing the balance,” he said.
The Afdis boss further indicated that during the six months period, the company’s operating income increased to $9,3 million, a growth of 131 percent on prior year.
“The strong performance is attributed to volume and revenue growth as well as value chain cost management. 
“Expanded margins are a result of value chain distortions emanating from foreign currency shortages,” he said.
Gowero said while the environment is envisaged to remain difficult, management will continue to focus on business sustainability given the foreign currency scarcity.
The company recommended a dividend of $3 per share, amounting to $3,5 million, in respect of the half year period.

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