By Alois Vinga

LISTED  wines and spirits manufacturer, African Distillers Limited (AFDIS),  has defied the inflationary headwinds and taken advantage of some low lying opportunities to record a 36% volumes growth.

Presenting the group’s financial performance for the year ended March 31 2022,  Afdis chairperson, Matlhogonolo Valela, said despite the operating environment being characterised by volatile exchange rates and foreign currency shortages, the company managed to outperform the limitations.

“Volume increased by 36% in the comparative twelve months prior period,  mainly driven by Wines and Ready to drink. The ability of the business to continue trading in foreign currency helped in sustaining the company’s import requirements,” he said.

Valela said a number of segments were severely curtailed  by the regional shortage of glass supply base to minimize product shortages in future.

The company continued to face price competition from counterfeit and illicit spirits amid plans for the  business to invest in new capacity to improve efficiencies and reduce production costs whilst engaging relevant authorities to address compliance issues.

In terms of financial performance,  revenue reached ZW$8,7 billion and  in historical cost terms, revenue was ZW$6,7 billion whilst operating income was ZW$1,8 billion.

Revenue growth in both inflation and historical terms was driven by firm demand, which resulted in higher volumes, with Net cash on hand standing at ZW$108,2 million.

The operating environment is set to remain challenging, and the company has put in mitigatory measures for business growth.

“Management continues to focus on revenue and probability growth opportunities through product innovation ,market share protection , production efficiencies and cost containment,” said Valela.