Afdis sales jump 39 percent

Business Reporter
WINE and spirits producer, African Distillers (Afdis) Limited, recorded a 39 percent increase in sales volume in the half-year ended 31 December 2020 compared to the prior period with minimal disruption to operations during Covid-19 lockdown periods.

The growth in volumes was largely driven by spirits and ciders. In a financial statement for the period under review, Afdis said wines declined by 22 percent largely as a result of reduced activity in hotel and restaurant channels compounded by supply disruption due to Covid-19 restrictions.

“Volumes grew by 39 percent from prior period, mainly driven by spirits and ciders, which grew by 57 percent and 33 percent respectively,” said the company.

“The Covid-19 pandemic has significantly changed and interrupted business, not just in Zimbabwe, but the world over.

“However, there has been minimal disruption to the company as operations continued during lockdown periods.”

During the half-year period, revenue was up 40 percent to $1,7 billion while operating income increased by eight percent to $304 million.

Afdis said a business continuity plan was in place and the company’s management continued to observe and implement protocols in accordance with published World Health Organisation guidelines.

The firm anticipates that the good agricultural season would boost economic activity and attendant benefits as more disposable income will be realised.

Food supplies are also expected to improve resulting in net savings on the food import bill.

“The full impact of Covid-19 remains uncertain. The company has implemented mitigatory measures that will ensure business continuity.

“The health and safety of employees and stakeholders will ensure business continuity; the company will continue to focus on exploring revenue growth opportunities, efficient conversion of cash resources into raw materials and cost-containment,” said the firm, adding that this would ensure business viability and profitability.