African Distillers Limited (AFDIS) earnings for the first quarter (Q1) ended June 2022 substantially grew against comparable period a year earlier due to improved demand for alcoholic beverages following an increase in outdoor activities since the relaxation of COVID-19 restrictions.
In its Q1 trading update, AFDIS said the positive performance was mainly attributed to the subsequent volumes growth.
“The company registered a volume growth of 18 percent for the quarter compared to the same prior year period, benefiting from improved product supply into the market and increased outdoor activities as the COVID-19 restrictions were relaxed.”
Wine volumes grew by 30 percent over prior year mainly driven by 4th Street wine due to improved availability and affordability following the commissioning of the brand’s local production.
Spirits and Ready to Drink volumes grew 23 percent and 12 percent respectively as a result of strong demand and increased market penetration.
“Revenue for the quarter grew by 57 percent in inflation adjusted terms over last year. Revenue growth was due to improved demand and inflation related adjustments.”
The company however noted with concern the unrelenting price movements in the economy and the power shortages currently bedeviling the country as posing serious challenges to its profitability.
Many companies are hence forced to turn to alternative sources of power to sustain operations but this has come at a bigger cost given the high prices of fuel.
However, AFDIS has been buoyed by the continued use of multi-currency regime as has been legislated to aid businesses with short to medium term planning.
