Chronicle Editor
Business Reporter
LISTED spirits and wines producer, African Distillers (Afdis) recorded volume growth of 11 percent during the half year ended 30 September compared to prior year as the firm plans to focus on product innovation, market share growth and production efficiencies.
Wine volume grew by 24 percent driven by improved availability and affordability of some brands which are now packaged locally.
Renewed focus on direct sales distribution boosted the spirit and ready to drink segment which saw volumes grow by nine percent and 11 percent respectively.
The firm noted that in inflation adjusted terms, revenue increased by 48 percent to ZW$14.9 billion whilst operating income increased by 128 percent to ZW$2.0 billion.
“In historic cost terms, revenue increased by 369 percent to ZW$11.4 billion whilst operating income increased by 463 percent to ZW$2.7 billion.
“Revenue growth in both inflation and historical terms was due to higher volume, favourable mix and replacement cost-based pricing while operating profit increased due to cost management and improved margins.”
The company forecast opportunities for growth anchored on increased economic activity resulting from mining, agriculture and infrastructure projects.
As such, it says it will continue to focus on product innovation, market share growth, and production efficiencies and cost containment measures.
Meanwhile, the board has recommended an interim dividend of US$0.0025 per share.
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