New Zimbabwe (London)

14 February 2014

Zimbabwe: AFDIS Revenues Increase 11 Percent

ZIMBABWE Stock Exchange-listed wines maker, African Distillers Limited's (Afdis) has revealed that revenues for the half year ended December, 2013 increased by 11 percent to US$18,4 million from US$16,6 million.

Earnings-per-share increased by 27 percent to 1,38c while operating income increased by 33 percent to US$2 million from US$1,5 million.

The company said higher revenue growth was due to favourable sales mix which impacted positively on trading margins thereby resulting in an increase of two percent.

"During the period under review, local product portfolio continues to grow enhancing revenues and margins. The ready to drink products are now contributing to total business," said Lydiah Mutamuko the company secretary.

"Localisation of production of ciders is at an advanced stage. Machinery has been ordered and production is targeted to start in the next financial year," she said.

Going forward she said the company would strengthen its brand portfolio and intensify further investment into the business. The company is targeting sales growth and increased profitability into the future through cost effectiveness and improved production.

Last Afdis announced that its rights offer for US$5 million was subscribed by 67,83 percent with 10,4 million shares subscribed against the targeted 15,4 million.

The money from the rights offer is earmarked for the procurement of a new ready-to-drink plant that has the capacity to produce 27,000 bottles an hour. The plant, which will make 20 million litres of ciders annually, will be commissioned in July 2014.

The funds will also be channelled towards upgrading the existing manufacturing plant at the company's premises in Stapleford base in Harare.

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