Wines, Ciders buoy Afdis

• Volumes up 2 pc in HY

• Profit drops 18 pc on price knockdowns

Business Reporter

LISTED spirits and wine maker African Distillers Limited (Afdis) reported Thursday that its net profit in the six months to December 31, 2015 declined 18 percent to $1,6 million from the same period a year earlier on soft consumer spending and price reductions.

Volumes however rose 2 percent to 3,9 million litres in the period lifted by 27 percent leap in cider volumes and a 19 percent growth in wine volumes.

Revenues fell to $12,7 million from $13,8 million a year ago.

Afdis chairman Mr Pearson Gowero said in a statement accompanying the results that the company will try to leverage on the existing customer base in order to unlock value.

“Although the trading environment is expected to worsen, the company continues to identify revenue growth opportunities to improve profitability.

“Initiatives anchored on existing customer base, current distribution network and product innovation include planned new product launches, brand extensions and retail price strategies,” said Mr Gowero.

Afdis will be paying out more than $173 000 in dividends to its shareholders after declaring an interim dividend of 0,15 cents per share.

The company has 115 045 024 shares in issue.