adminBusiness Reporter
Zimbabwe Stock Exchange-listed wine and spirit maker, African Distillers (Afdis) recorded a 47 percent jump in profits to $1,9 million during the half year period ended December 31, 2014 as volumes rose by 20 percent.
According to the company the growth in volumes, which was ahead of turnover, was due to increased contribution of the lower priced cider.
The company localised the production of ciders and commissioned a ready to drink line in October last year.
“The spirits category remains a significant contributor to overall business performance. Growth in this sector augmented by performance of locally produced ciders which resulted in a 20 percent growth in volumes,” the company said.
Turnover rose $13,7 million during the period under review while gross sales grew by 13 percent to $20,8 million and operating income was up 29 percent to $2,6 million.
The operating income included $249 963 relating to the disposal of assets.
Net Finance costs were down a massive 81 percent to $37 000 as the company resorted to value chain cost reduction initiatives and also benefitted from favourable rand exchange rate movement over the period.
The company declared a dividend of 0,21 cents per share. Looking ahead the company said that it was going to focus on sales growth based on sustaining current spirits market share and leveraging on the growth of locally produced cider.
The company also indicated that it was eyeing increased profitability through cost management and improved production efficiencies.
Afdis, which has been selling imported wines and spirits, now manufactures the bulk of the products it markets and currently operates with six depots situated in Bulawayo, Harare, Kwekwe, Masvingo, Mutare and Victoria Falls.
Online Reporter