By Alois Vinga
LISTED wine and spirit maker, African Distillers (AFDIS) has acknowledged that the increased spending from the mining and agricultural sectors were some of the factors which prompted its 31% volume growth.
Presenting its trading update for the third quarter ended December 31, 2021, AFDIS company secretary Lydia Mutamuko said the positives from the two sectors had cascaded down to the company’s coffers.
“Consumers’ spending was further improved by increased activity in the key sectors of the economy such as agriculture, mining, and infrastructure projects,” she said.
“As a result, the company registered a volume growth of 32% for the quarter and 48% for the nine months compared to the same the prior year period.”
Wine volumes grew by 67% mainly driven by the 4th Street brand due to improved availability and affordability following the local production move, which was commissioned in the quarter under review.
The spirits and ready-to-drink (“RTD”) volumes also grew by 17% and 41% respectively. The growth in these categories was curtailed by supply constraints caused by glass pack shortages in the region.
“Foreign currency generated from trade continues to benefit the economy as it makes it easier to fund external supplies of raw materials and capital equipment,” she said.
During the period under review, revenue grew by 57% for the quarter and 52% for the nine months in inflation-adjusted terms over last year, whilst in historic terms grew by 148% and 159% for the quarter and nine months respectively.
“This is as a result of volume growth emanating from firm demand over the festive season. The company continues to leverage on foreign currency generated from trade to ensure the continuous supply of imported inputs and to contain supply chain costs,” said Mutamuko.
“Going forward, the company will continue to benefit from the growth in key sectors of the economy despite the high inflation, depreciating exchange rate, and the Covid-19 effects with management continuing to focus on strategies that grow the market share and consequently enhance shareholder value.”