Online Reporter
Business Reporter
AFRICAN Distillers Limited (Afdis) recorded a strong start to its 2026 financial year, with first-quarter revenue rising 47 percent to US$27,9 million, driven by robust consumer demand, improved product availability and strong volume growth across its portfolio.
In a trading update for the quarter ended June 30, 2026, the beverages manufacturer said the operating environment remained broadly stable, supported by a steady exchange rate, contained inflation and a tight monetary policy framework, which helped sustain consumer spending and business planning.
The company said overall sales volumes increased by 43 percent compared to the same period last year, with growth recorded across all product categories as formal market demand strengthened and the reduction in grey market activity continued to benefit legitimate businesses.
Ready-to-Drink (RTD) beverages delivered the strongest performance, with volumes increasing 48 percent year-on-year, supported by sustained consumer demand.
Wine volumes rose 80 percent, driven by strong sales of affordable brands including 4th Street, Montello and Green Valley.
Spirit volumes grew 32 percent, underpinned by higher demand for brown spirits, particularly Star Brandy, as well as improved product availability across key brands and pack sizes.
The company attributed the strong performance to stable exchange rates, improving consumer spending and effective market execution, together with intensified regulatory enforcement against illicit and counterfeit alcoholic beverages.
Afdis, however, said the quarter was characterised by significant input cost pressures arising from higher fuel and packaging material costs, stronger regional currencies, particularly the South African rand, on imported inputs, as well as the impact of the Value Added Tax adjustment introduced in January 2026.
Despite the higher production costs, the company said profitability benefited from improved operating leverage and disciplined revenue management, including appropriate pricing strategies, product mix optimisation and stringent cost controls.
“The company delivered a strong performance during the quarter, with overall volumes increasing by 43 percent compared to the corresponding period last year.
“Growth was recorded across all product categories, supported by stable exchange rates, buoyant consumer spending, improved product availability and effective marketplace execution. The reduction in grey market activity also supported demand across the formal trade,” said Afdis Company Secretary Ms Lydia Mutamuko in the trading update.
Looking ahead, Afdis said it remained optimistic about the outlook for the remainder of the financial year, citing expectations of continued macroeconomic stability, lower interest rates, sustained economic activity and firm consumer demand.
The wines and spirits maker said it would continue to closely monitor input cost movements, regional currency developments and taxation changes while maintaining a focus on growing market share and enhancing profitability.
The company also revealed plans to expand production capacity through targeted capital investments.
These include the acquisition of an additional packaging line valued at US$8 million, which is expected to support rising demand and secure long-term production capacity.
The planned investment underscores Afdis’ confidence in the market and positions the company to capitalise on growing demand while strengthening its competitive position in Zimbabwe’s alcoholic beverages sector.
