Chronicle Editor
Oliver Kazunga, Senior Business Reporter
WINE and spirits producer, African Distillers (Afdis) Limited, intends to invest in capital projects to localise production of some of the company’s imported raw materials.
In a statement for the nine months period ended March 31, 2021, Afdis said it would continue focusing on strategies that will enhance revenue growth opportunities, cost containment and improved production efficiencies.
“Plans are underway to invest in capital projects to localise production of some imported products. This will ensure improved business profitability and reduced foreign currency requirements,” it said.
During the period under review, Afdis board recommended not to declare a final dividend as the company requires funds to undertake capital expansion projects.
In this context, the total dividend for the nine months period remained at the interim figure of ZWL$0,50.
Revenue volume for the period stood at ZWL$2,76 million while operating income was ZWL$393,58 million.
“In historical cost terms, revenue was ZWL$2,4 million while operating income was ZWL$662,23 million. Revenue growth was due to firm demand of company products, which resulted in high volumes.
“Net cash on hand was ZWL$75 million, this is largely made up of foreign currency at banks awaiting remittance to foreign suppliers,” said Afdis.
The firm’s volumes grew by 34 percent on the comparative nine months period mainly driven by spirits and ready to drink, which registered growths of 50 percent and 22 percent respectively.
It is hoped that the good agricultural season is set to benefit the economy by increasing national food supplies resulting in net savings on the import bill, increased foreign currency earnings and improved disposable incomes.
“A new product, Gold Blend number 9, was launched in the spirit category and was well received by the market thereby impacting positively on the performance of brown spirits.
“Wines grew by only two percent as a result of reduced activity in the restaurant and hotel channel due to Covid-19 restrictions,” said Afdis.
On Covid-19, it said the impact of the pandemic remains uncertain and the health and safety of the firm’s employees and stakeholders remains of paramount importance during the Covid-19 era. — @okazunga
Online Reporter