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AFDIS Post 18 Million Profit For Half Year

Alcohol beverage manufacturer, African Distillers limited (AFDIS) profits for the first half of the year, more than trebled on account of higher revenues and cost containment.

Profits for the period ending 30 June 2019 reached ZWL$ 18 million, a 243 percent surge compared to same period the previous year.

This was driven by an increase in volumes of 17 percent while operating income charged 257 percent up to reach ZWL$ 25.4 million.

“Revenue and operating income grew by 98 percent and 257 percent respectively. The significant increase in operating income is as a result of volume upsurge, supply chain cost management and inflation driven price adjustments,” AFDIS chairman, Pearson Gowero said in a statement accompanying the results.

Revenue increased by 98 percentage points in the comparative period to record ZWL$ 60.6 million.

This was mainly driven by price adjustments in a highly inflationary market.

Total assets grew to ZWL$ 81.8 million from ZWL$ 40.2 million.

The Spirits segment increased 21 percent while ready-to-drink segment went up by 18 percent. This was attributed to product innovation within the gin and vodka segments.

However, the wine segment recorded a 10 percent decline.

Analysts have attributed the positive growth for the gin and vodka segment to affordability at a time other alcoholic beverages on the market have increased.

“Product innovation within the gin and vodka segments significantly contributed to the overall spirit category volume growth,” added Gowero.

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