By Alois Vinga
LISTED spirits and wines maker, African Distillers (Afdis), has recorded a 56 % volume growth backed by recently introduced Gold Blend Number 9 whisky among other factors.
In a recent trading update for the period ended June 30 2021, Afdis company secretary, Lydiah Mutamuko said the company registered a volume growth of 56% for the quarter over the same period last year owing to improved access to the market.
“Spirit volume grew by 17% over prior year benefiting from the good performance of brown spirits. Widespread market acceptance of the newly introduced Gold Blend Number 9 contributed to this growth.
“The business however, continued to witness the influx of cheap and illicit spirits in small packs from several producers in the market. Wines and Ready to Drink (RTD) volumes grew 113% and 116% respectively, riding on improved availability in the quarter,” she said.
Revenue for the first quarter increased by 38% in inflation adjusted terms, whilst in historic terms it grew by 228% attributed to firm demand for the company’s products which resulted in higher volumes.
“The trading environment for the quarter under review was relatively stable. The availability of foreign currency generated from trading enabled the Company to meet its current obligations,” said Mutamuko.
Revenue for the first quarter increased by 38% in inflation adjusted terms, whilst in historic terms it grew by 228%. Revenue growth was due to firm demand for the company’s products which resulted in higher volumes.
Afdis hailed the good agricultural season as well as the partial easing of COVID-19 lockdown restrictions, improved consumer spend and the general business operating conditions as among the good performance contributing factors.
The group said it is still monitoring the impact of the Covid-19 pandemic as Zimbabwe is currently dealing with a “third wave.”
Zimbabwe is currently under siege of a third wave, with official figures showing that the country had recorded 85 732 cases and 2 697 deaths as at July 19, 2021.
During the company’s just ended FY 2020 , the company became a subsidiary of beverages giant, Delta Corporation after the latter gained a controlling stake in Afdis following the acquisition of additional shares during the past financial year.
As a result, the company’s financial year has changed from June 30 to March 31 to align with that of the new parent company.