admin
BH24 Reporter
HARARE – Wines and spirits maker African Distillers (AFDIS) recorded an 18 percent improvement in revenue to $16, 5 million in the half-year period ended December 31, 2017.
The rise in revenue came on the back of a solid performance in the spirits and whisky sector. There was however a volume decline in the Ready-to-Drink segment.
“While RTDs grew by 2 percent over prior year, total volume declined by 5 percent due to intermittent shortages. The spirit segment continued to be the dominant contributor to total revenue, followed by RTDs and wines.
“Of significance is the whiskey category which grew by 7 percent, aided by the newly introduced Gold Blend Black,” said chairman Pearson Gowero in a statement accompanying the results.
Trading margins improved by 6 percent due to value chain management and product mix. Operating income rose by 62 percent to $4 million. Profit for the period under review jumped 57 percent from $1, 76 million in the prior comparable period to $2, 75 million.
AFDIS incurred a foreign exchange loss of $0, 4 million attributable to the firming South African rand “compounded by the delay in settling foreign creditors occasioned by foreign currency shortages” said management. Finance income of $0, 1 million, earned from short term investments partly mitigated the loss.
Cash balances stood at $13, 1 million, an increase of $9 million on prior year which is due to the delays in settling foreign obligations. The firm’s board recommended an interim dividend of 0, 40 cents per share.
Online Reporter