19 February 2018

Zimbabwe: Afdis H1 Net Income Up 57pct

Wine and spirits maker African Distillers (Afdis) reported a 57 percent rise in after tax profit to $2,8 million in the six months to December, 2017 from $1,8 million in the prior comparable period.

Revenue rose 18 percent to $16,5 million from $13,98 million in the same period in the prior year.

Operating income came in higher by 62 percent to $4 million from $2,5 million in the prior comparable period.

Chairman Pearson Gowero said while Ready to Drink (RTDs) grew by 2 percent over the prior period, total volumes declined by 5 percent owing to intermittent shortages.

The spirit segment continued to be the dominant contributor to total revenue, followed by RTDs and wines, he said. The whisky category grew by 7 percent driven by the newly introduced Gold Blend Black.

"Demand for the company's products remained buoyant but could not be fully satisfied due to the inconsistent supply of finished products owing to the unavailability of foreign currency," Gowero said.

Afdis incurred a foreign exchange loss of $400,000 due to appreciation of the rand against the US dollar and the delays in settling foreign credit due to foreign currency shortages.

The company held $13,1 million in cash, an increase of $9 million on prior year due to the delays in settling foreign obligations. Going forward, Gowero said the company continues to focus on identifying opportunities to improve market share and profitability.

It declared an interim dividend of 0,4 cents per share.

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