Online Reporter
Nelson Gahadza, Zimpapers Business Hub
Spirits and wines maker African Distillers says improved consumer spending and the clampdown on informal imports and illicit products resulted in a 43 percent growth in volumes in the half-year to September 30, 2025.
Group chairman, Matlhogonolo Valela, in a statement accompanying the financials, said the wine, ready-to-drink (RTD), and spirits segments grew by 59 percent, 47 percent and 36 percent, respectively.
“This strong performance was driven by sustained demand across all categories, supported by the improved consumer spending and the clampdown on informal imports and illicit products.
“Volume was further boosted by strong market penetration and brand-building initiatives,” he said.
The Government is actively enforcing a comprehensive clampdown on informal imports and illicit alcoholic products, including wines and spirits, through a combination of new statutory instruments, enhanced border security, and nationwide operations involving multiple agencies.
Key measures and actions include new legislation such as Statutory Instrument 62 of 2025, which was gazetted, formally banning the production, sale, and consumption of certain harmful illicit brews under the Harmful Liquids Act.
Alongside enforcement, the Government and civil society organisations are running education campaigns to inform the public about the health dangers of unregulated alcohol and to encourage citizens to report illegal operations.
However, in terms of financial performance, Afdis registered revenue growth of 54 percent to US$40,4 million, in line with the increase in volume.The company’s operating income, at US$5,7 million, was 280 percent above the prior year, while cash generated from trading amounted to US$5,9 million in the period under review.
Mr Valela said fixed assets rose by 42 percent to US$7,6 million, reflecting an investment of US$2,7 million in capital expenditure aimed at increasing production capacity and enhancing operational efficiency.
For the period ahead, Mr Valela said the company continues to prioritise business growth and profitability by expanding market share, product innovation, improving production efficiency,and controlling costs.
He said there are ongoing projects to expand and upgrade the plant and equipment to meet the growing demand of its product offerings. For the period under review, the board recommended an interim dividend of US$0.0050 per share, amounting to US$622 860.
