Govt crackdown on illicit goods boosts AfDIS performance
LIVINGSTONE MARUFU
Listed spirits and wine maker, African Distillers (AfDIS), has reported a robust half-year performance ended September 30, 2025, driven largely by the government’s clampdown on informal imports and illicit products.
The regulatory enforcement has helped AfDIS increase its volumes and sales, as illicit goods were confiscated and destroyed, curbing illegal supply chains.
In a statement accompanying the half-year results, Chairman Matts Valela said: “A stable operating environment has also supported improved financial planning and greater operational predictability for businesses.”
The company achieved a strong 43% increase in volume compared to the prior year, with wine, ready-to-drink (RTD), and spirits growing by 59%, 47%, and 36%, respectively. “This strong performance was driven by sustained demand across all categories, supported by the improved consumer spending and the clampdown on informal imports and illicit products. Volume was further boosted by strong market penetration and brand building initiatives,” Valela added.
Revenue rose 54% to US$40.4 million from US$26.2 million recorded in the comparable period, reflecting the increase in volume. Profit for the period surged 41% to US$3,592,865, up from US$2,556,597 in the previous year. Operating income reached US$5.7 million, a 280% increase over prior year, while cash generated from trading amounted to US$5.9 million during the period under review.
Fixed assets rose 42% to US$7.6 million, reflecting an investment of US$2.7 million in capital expenditure aimed at increasing production capacity and enhancing operational efficiency.
Valela noted that despite benefiting from sustained regulatory enforcement against smuggled and counterfeit products, the sector faces constraints from persistent power outages, limited access to local currency (ZWG), and high interest rates.
“Management will continue to prioritise business growth and profitability by expanding market share, product innovation, improving production efficiency, and controlling costs,” he said. The board has recommended an interim dividend following the strong performance.
AfDIS also has several ongoing projects to expand and upgrade plants and equipment to meet the growing demand for its product offerings.
