LIVINGSTONE MARUFU
Listed spirits and wines maker, African Distillers (AfDIS), is confident of meeting festive season demand and operating at full throttle, MD Stanley Muchenje has said.
“This year will be a festive season to remember as localised ciders are operating at full capacity and we have launched a new premium Gold Blend premium brand which is doing very well since its launch,” Muchenje said.
He added: “We will see what the demand will be like this festive season but we are ready for it and we will act according to the demand at hand to ensure our customers are satisfied during the festive season.”
Muchenje remarks come after AfDIS built a US$1m cider fermentation plant with close to a million litres of ciders fermented in a month.
The plant was established mainly for hunters’ dry and hunters’ gold but other ciders are also being processed in that plant to cut costs.
With that plant, AfDIS is saving US$6m per year.
In its financial statements for the six months to September 30, 2022, revenue for AfDIS rose 48% to ZWL$14.9bn from ZWL$10.05bn reported in the prior comparative period on the back of the higher volume, favourable mix and replacement cost-based pricing.
Profit increased to ZWL$584m in the reviewed period from ZWL$175m achieved in the same period in 2021.
Overall volume growth increased by 11% in the period as wine volumes grew by 24% driven by improved availability and affordability of some brands which are now packaged locally, with spirit and ready-to-drink volumes growing by 9% and 11% respectively.
AfDIS anticipates capitalising on opportunities for growth anchored on increased economic activity resulting from mining, agriculture, infrastructure projects, the forthcoming elections and relaxed Covid-19 restrictions, despite the challenging operating environment.
