Afdis revenue jumps 57%
LETTICIA MAGOMBO
Spirits and wines maker, African Distillers Limited (Afdis) reported a 57% growth in revenue for the quarter to December 31,2021 due a strong demand during the festive season, Business Times can report.
“This is as a result of volume growth emanating from firm demand over the festive season. The company continues to leverage on foreign currency generated from trade to ensure continuous supply of imported inputs and to contain supply chain costs,” Afdis company secretary, Lydia Mutamuko, said.
She said volumes also grew 32% in the period under review, attributing this increase largely to the relaxation of Covid-19 lockdown as well as the increase in economic activity.
“The company registered a volume growth of 32% for the quarter and 48% for the nine months compared to the same prior year period.
“Wines volume grew by 67% mainly driven by 4th Street due to improved availability and affordability following the local production project which was commissioned in the quarter under review.
“Spirits and Ready to drink volumes grew 17% and 41% respectively,” Mutamuko said.
Despite the growth, Mutamuko said the company was not immune to the effects of Covid-19 which disrupted normal functions by leading to increased employee absenteeism during periods of high infections.
She said the company continues to put in place health and safety measures to combat the effect of the pandemic.
Other shortfalls came in the form of glass pack shortages which reduced volume outputs.
In the outlook, Mutamuko is optimistic the high inflation and depreciating exchange rates which are plaguing the country’s businesses would not be a deterrent to the company’s growth.
