Timothy
Business Writer
African Distillers Limited (Afdis) revenue for the first quarter to June 30, 2024, totalled US$12,6 million but remained at par with the comparable quarter.
Volumes, a key indicator of demand, surged by 6 percent year on year, underpinned by the growth in wines and ready-to-drink, mainly ciders.
The group continues to experience pressures from the influx of cheaper imports and illicit products on the market.
This has significantly weighed down volume growth as consumer demand met other alternatives.
“Revenue performance was negatively impacted by sales mix issues as well as the reduction in prices as the business positioned itself to protect market share from both imported products as well as the local affordable spirits that are also in the markets,” Managing Director Stanley Muchenje told shareholders at the company’s annual general meeting recently.
In the outlook, the spirits and wines producer want to sustain growth by ensuring that there is product availability across the categories.
Meanwhile, shareholders approved a share buyback and Share Appreciation Rights Scheme.
Afdis, however, indicated that it is banking on projected economic growth anchoring on infrastructural development, tourism, mining activities and increased diaspora remittances.
This is, however, expected to be slowed by El Nino induced drought being experienced in the country and the continued fall of global metal prices.
Afdis indicated it was hopeful that the newly introduced currency, Zimbabwe Gold (“ZiG”) will spur the local economic activity through restoration of currency stability, exchange rates and inflation.
Bongani Ndlovu