AFDIS rolls out US$8m packaging line to scale up output
CLOUDINE MATOLA
Listed spirits and wine maker African Distillers Limited (AFDIS) is acquiring an additional US$8m packaging line as it moves to boost production capacity and meet rising consumer demand, Business Times can report.
Company secretary Lydiah Mutamuko said the group was ramping up investment in plant and equipment to ensure it is adequately equipped to support growth.
“To address increasing consumer demand, significant investments are being made in plant and equipment. Notably, the business is acquiring an additional packaging line valued at US$8m. This strategic investment will equip the company with the necessary capacity to efficiently meet rising market demand and support sustained growth,” Mutamuko said.
She added that management remains upbeat about performance in the remaining months of the financial year as the company intensifies efforts to grow market share and improve margins.
“Management remains optimistic about the remainder of the financial year. The business aims to grow market share and enhance profit margins through continued effective distribution and cost management,” she said.
Mutamuko also noted that activity in key sectors of the economy continues to present growth opportunities for the business.
“The economic environment continues to present opportunities for growth benefiting from increased activity in key economic sectors such as mining, construction, agriculture and diaspora remittances. Ongoing restrictions on smuggled and counterfeit goods will support local manufacturing growth and maintain strong performance going forward,” she said.
AFDIS posted strong financial and volume growth during the period under review. Revenue for the quarter surged 62% to US$30 million, while nine-month revenue rose 57% to US$71 million for the period to December 31, 2025. The growth was driven by strong volume performance, supported by improved product availability across all distribution channels, particularly the independent trade.
Volumes for the quarter grew by 64% compared to the same period in the prior year and increased by 51% for the nine months to December 31, 2025, buoyed by robust festive-season demand.
The ready-to-drink (RTD) category recorded the strongest growth, with volumes jumping 92% year-on-year on the back of firm demand for cider packs. Wine volumes increased by 49%, supported by the affordable range, while spirits volumes rose 30%, anchored by strong performance in brown spirits.
