aurora
Enacy Mapakame
Spirits and wines maker- African Distillers Limited (Afdis)’s overall volumes for the half year to December 30. 2020, jumped by 39 percent driven by growth in spirits and ciders although the company slid into a loss position.
Company chairman, Pearson Gowero, said spirits rose 57 percent while ciders were 33 percent above same period in the prior year.
Wines went down 22 percent due to reduced activity in the restaurant and hotel channel compounded by supply disruptions as a result of the Covid 19 restrictions.
Zimbabwe has been at various levels of lockdowns since March 30 last year, which resulted in reduced trading hours for businesses as well as limited movements of people in adherence to the lockdown requirements.
Although the Covid 19 pandemic interrupted businesses across the glove, Afdis remained operational during the lockdown periods.
During the period under review, there was also a general stability on the foreign currency exchange rate due to the Reserve Bank of Zimbabwe auction system which has also improved the availability of foreign currency on the official market.
“There was a general improvement in the economic environment over the six month period under review parking to a relatively stable flatten exchange market, and improved availability of foreign currency from both the auction system and rejected foreign currency regulation,” said Gowero in a statement accompanying the group’s financials.
In terms of financial performance, revenue for the period went up 40 percent to $1,7 billion from $1,2 billion recorded in the same period in the prior year driven by high volumes and cost containment.
An operating profit of $304 million which was 8 percent above comparable prior year period.
The group recorded a loss for the period of $298 million from a profit position of $49 million achieved during the same period last year.
Loss per share of 252,47 cents was recorded compared to earnings per share of 42,02 cents.
Net cash on hand was $195 million from $32,8 million as at June 2020.
Total assets decreased to $1,8 billion from $2,1 billion as at June 2020.
While Covid 19 and its impacts are causing uncertainties across economies, the anticipated good agricultural season is expected to benefit the economy by increasing disposable incomes and improved for supplies which will result in need savings on the food import bill.
For Afdis, Gowero said focus will be on ensuring business viability and profitability.
“The company will continue to focus on exploring revenue growth opportunities, efficient conversation of cash resources into raw materials and cost containment,” he said.
The group declared an interim dividend of 50 cents a share.
Bongani Ndlovu