Chronicle EditorBusiness Reporter
ZIMBABWE Stock Exchange-listed wines and spirits producer, African Distillers Limited (Afdis) has remitted $14.6 million in Government taxes, the company’s financial statement for the year ended June 30, 2017 shows.
The firm’s revenue during the period under review rose by $2.8 million to $25 million while operating income increased by $1.4 million to $4 million.
The sterling performance is a result of an 18 percent volume increase complemented by a reduction in overheads.
The company incurred a net exchange loss of $0.36 million due to a significant foreign currency (rand) exposure of $2.2 million.
The full impact of this was, however, reduced by interest income of $0.14 million earned from investment of surplus cash, said Afdis chairman, Mr Pearson Gowero.
He said the company’s profit after tax was adversely affected by re-organisation costs and an investment write off totalling $1 million.
“If the distortion relating to this is removed, the earnings per share and profit after tax would have increased by 31 percent in the period under review.
“The balance sheet is strong with a current ratio of 2.54 compared to 2.28 in prior year and significant cash resources of $7.5 million.
“Cash generated from trading amounted to $4.8 million, a 64 percent increase on prior year,” said Mr Gowero.
Turning to future prospects, he said the good agricultural season was expected to improve disposable incomes and guarantee the country of sufficient food supplies.
This, he said, would result in a net saving on the food import bill.
“It is, however, likely that foreign currency shortages will continue and this will limit business growth.
“Management will continue to focus on efficient conversion of cash resources into raw materials as well as exploring revenue growth opportunities and implementing further cost control measures,” said Mr Gowero.
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