Zimbabwe’s African Distillers Limited reports rise in sales volume triggered by surge in spirits demand
ZIMBABWE – African Distillers Limited, manufacturer, distributor and marketer of branded spirits, ciders and wines in the Zimbabwean market, has reported sales volume growth of 34% in the nine months period ended March 2021.
According to the beverage maker, the growth was triggered by surge in the consumption of spirits and ready to-drink beverages which grew by 50% and 22% respectively.
The company indicated that a new product, Gold Blend Number 9, was launched in the spirit category during the period under review, and was well received by the market impacting positively on the performance of brown spirits.
Meanwhile its wines volume grew marginally by 2% as a result of reduced activity in the restaurant and hotel channel due to COVID-19 restrictions.
The rise in demand of the company’s products resulted in its revenue rising to ZW$2.76 billion (US$7.6m) while operating income stood at ZW$393.58 million (US$1.08m).
The net cash on hand was ZW$75 million (US$207,000) and this is largely made up of foreign currency at the banks awaiting remittance to foreign suppliers.
Afdis chairperson Pearson Gowero, revealed that Delta Corporation, Zimbabwe’s largest beverage manufacturer acquired additional shares in the entity which effectively resulted in Afdis being its subsidiary, altering the beverage company’s financial reporting period.
“The company has therefore, changed its financial year from June 30 to March 31, to align with the group. Accordingly, the current financial statements have been prepared for the nine-month period from July 2020 to March 2021 and care should be exercised when making a comparison to the prior 12-month period,” Gowero said.
The company anticipates for a good agriculture season which would increase national food supplies resulting in net savings on the import bill, increased foreign currency earnings and improved disposable incomes.
“The company will continue to focus on strategies that will enhance revenue growth opportunities, cost containment and improved production efficiencies.
“Plans are underway to invest in capital projects to localise production of some imported products. This will ensure improved business profitability and reduced foreign currency requirements,” said Mr Gowero.
It is important to note that the Zimbabwe stock exchange-listed company, recently appointed Stanley Muchenje as the Managing Director of the company with effect from 1 April 2021.
Stan took over the helm of the organization from Cecil Gombera who retired from the company on 31 March 2021.
The new appointee is a marketer by profession and joined Afdis from Delta Corporation where he was the Sales Executive.
Other than Delta Corporation acquiring additional shares in Afdis, the company finalized the full acquisition of the issued shares in United National Breweries (SA) for a consideration of ZAR636 million (US$46m) in April 2020.
