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Business Reporter
WINE and spirits producer, African Distillers (Afdis) Limited recorded an 18 percent increase in volumes in the first quarter to June 30, 2022 attributing it to the relaxation of Covid-19 restrictions.
In a trading update, the firm also said the use of the multi-currency regime which has been legislated will aid businesses with their planning.
“The company registered a volume growth of 18 percent for the quarter compared to the same prior year period, benefitting from improved product supply into the market and increased outdoor activities as the Covid-19 restrictions were relaxed.
“Wine volume grew by 30 percent over prior year mainly driven by 4th Street wine due to improved availability and affordability following the commissioning of the brand’s local production,” it said.
“Spirits and Ready to Drink (“RTD”) volumes grew 23 percent and 12 percent respectively as a result of strong demand and increased market penetration.”
It said it continues to leverage on foreign currency generated from trading to ensure continuous supply of imported inputs. The relaxation of Covid-19 restrictions improved business activities across the economy.
Revenue for the quarter grew by 57 percent in inflation-adjusted terms over last year, whilst in historic terms grew by 285 percent.
Revenue growth in both financial reporting sets was due to improved demand and inflation-related adjustments.
On outlook, Afdis said it continues to implement various initiatives focusing on revenue and profitability growth adding that product innovation, market share protection and cost containment will enhance shareholder value.
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