Afdis poised to grow turnover by 20pc

Business Reporter
AFRICAN Distillers Ltd is on course to achieve a 20 percent growth in turnover to US$30 million at the end of its financial year while a 16 percent volume increase is also expected, managing director Mr Cecil Gombera said on Wednesday. Despite the challenges of diminishing disposable incomes due to tight liquidity, the business was on a growth trend after turnover in the first quarter to October this year was 9 percent up from the previous quarter.

Volumes during the quarter rose by 6 percent, largely driven by local brands. Brown spirits were 30 percent up.
“Viceroy and Chateau are performing well and are in line with group expectations,” said Mr Gombera. White spirits continued to face stiff competition from cheaper products at the end of the market but the group was moving at addressing this.”

Work towards local cider production was progressing with Mr Gombera saying the ready to drink market was the future in terms of the growth of the business.

Feasibility studies had been completed and the group was in the process of piecing together the equipment. The US$5 million plant is expected to be commissioned in June 2014.

Sting was relaunched and it has been well received, said Mr Gombera while the same trend had been witnessed on the Esprit brand.
Under wines, Mr Gombera said the long-term objective was to achieve an annualised volume of one million litres.

The company is also planning to refurbish its current manufacturing plant in order to improve monthly capacity. Going forward, the group intends to achieve an 85 percent market share of all the segments, said Mr Gombera.