RYAN CHIGOCHE
Listed wine and spirits maker, African Distillers Limited (Afdis)’ revenue rose 38% in the first quarter to June 30, 2021 on the back of a huge demand for the company’s products, an executive has said.
In a trading update published this week, company secretary Lydiah Mutamuko, said the growth was helped by improved operating environment, good agriculture and the market acceptance of the new Gold Blend number 9 brand.
“The trading environment for the quarter under review was relatively stable. The good agricultural season, as well as the partial easing of Covid-19 lockdown restrictions, improved consumer spending and the general business operating conditions.
“The availability of foreign currency generated from trading enabled the company to meet its current obligations,” Mutamuko said.
“Widespread market acceptance of the newly -introduced Gold Blend Number 9 contributed to this growth.’’ Mutamuko said.
Volumes grew 56% in the period under review compared to same period last year owing to improved access to the market with the spirit volume soaring 17% over the prior year benefiting from the good performance of brown spirits.
Wines and Ready to Drink volumes grew 113% and 116% respectively, riding on improved availability in the quarter.
Mutamuko said the business, however, continued to witness the influx of cheap and illicit spirits in small packs from several producers in the market providing unfair competition.
Management, she said, would focus on market share growth, profitability, innovation, and cost management to enhance shareholder value.
Afdis, which has been selling imported wines and spirits, is now manufacturing the bulk of the products it markets and currently operates six depots located in Bulawayo, Harare, Kwekwe, Masvingo, Mutare and Victoria Falls.
Recently, Zimbabwe’s biggest brewer, Delta Corporation, gained a controlling stake in Afdis after acquiring additional shares, making the spirits and wines maker its subsidiary.
