Chronicle Editor
Business Reporter
SPIRITS and wines maker, African Distillers Limited (AfDis) recorded a 130 percent growth in operating income to $9,3 million in the six month period ended 31 December 2018 compared to $4 million in 2017.
In a statement accompanying the company’s unaudited financial results for the period under review, chairman Mr Pearson Gowero attributed the strong performance to volume and revenue growth.
“Operating income increased to $9,3 million, a growth of 130 percent on prior year. This strong performance is attributed to volume and revenue growth as well as value chain distortions emanating from foreign currency shortages,” he said.
Gross sales as at December 31, 2018 stood at $34,2 million compared to $23 million during the same period in 2017. Profit for the period under review stood at $7 million up from $2,6 million in the comparable period in 2017. The company declared an interim dividend totalling $3,5 million at 3 cents per share.
During the period under review, demand for the company’s products remained firm but could not be fully satisfied due to severe foreign currency shortages. Sales volume increased by 40 percent compared to prior year with ready-to-drink (RTD) registering a 55 percent growth followed by spirits at 25 percent and wines 22 percent.
“Spirits continue to dominate revenue accounting for 61 percent followed by RTDs at 29 percent and wines contributing the balance,” said Mr Gowero.
On the outlook, the company said the trading environment remains difficult, but it was hoped that the national economic reform agenda will yield positive results. Management has said it will continue to focus on business sustainability given the foreign currency scarcity.
Online Reporter