Chronicle Editor
LISTED wine and spirit maker, African Distillers (Afdis) total volumes for the six months ended December 31, 2019, dropped by 35 percent as reduced consumer spending took a toll on demand but revenue rose 25 percent to Z$223 million on replacement cost pricing. The trading period is characterised by inflationary pressures, reduced disposable incomes and acute shortages of foreign currency, which necessitated frequent price increases. Chairman, Mr Pearson Gowero, said faced with these circumstances, the firm had to frequently review prices while considering consumer affordability. “Consumer trends have shown a shift from premium and mainstream segments to value products in reaction to the erosion of disposable incomes,” he said. In the inflation adjusted results, the company’s operating income increased by 15 percent to Z$62.74 million from Z$54.44 million in the comparative period. – New Ziana.
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