The Sunday Mail
Enacy Mapakame
A MYSTERY buyer recently snapped up a 4,17 percent stake in wines and spirits maker African Distillers Ltd (Afdis) in a $2,9 million deal on the Zimbabwe Stock Exchange (ZSE).
The deal, which saw the unknown buyer pocketing 4,19 million shares of the counter, was sealed on October 27, 2015. Stockbrokers say the transaction was a “rare exchange” in a tightly held stock. They also suggested that someone is possibly shoring up their holding in the profitable firm as the deal was between a local buyer and a local seller. Despite attempts to find out the identity of the buyer, it could not be established by the end of last week.
Afdis’ shareholder register has not been updated to reflect the new shareholder changes nearly two weeks after the transaction, a situation analysts say should have been fairly expedient in an electronic stock market system. As at November 4, the register showed Afdis Holdings Ltd as the biggest shareholder with a 58,55 percent stake, followed by Old Mutual Life Association at 10,49 percent. Stanbic Nominees Private Ltd holds 6,29 percent, the Mining Industry Pension Fund 4,7 percent and Delta Corporation Ltd 2,84 percent.
Meanwhile, on Wednesday Afdis reported that the group’s volume growth continues to outpace last year’s performance on growing demand for its ciders and wines. Revenue is however lagging behind as spend on high value spirits tapers out in line with the prevailing economic conditions.
Mr Gombera told shareholders at the company’s AGM in Harare last week that the whiskey segment was expected to grow 22 percent this year spurred by popular brand Gold Blend.
Despite significant competition, the spirits business – contributing more than 58 percent of Afdis’ total volumes – grew 8 percent from a year earlier. “Our brown spirits will no doubt continue to dominate the segment and gain market share driven by the very popular Gold Blend Whiskey.
“The white spirits face stiff competition from affordable house brands launched by some retail chains but our vodka brand, Nikolai will contribute meaningfully to volumes for the business to remain competitive in this segment,” said Mr Gombera at the company’s 65th AGM where shareholders also approved a share buyback.
The shares will be acquired at not more than 5 percent and 5 percent below the weighted average of the market at which the shares are traded on the (ZSE). Analysts forecast a strong performance for Afdis on the back of growing demand in ciders. It is believed that ciders, unlike lagers, have not been badly affected by slowing demand. Local production of ciders began this year. Demand for wine is also projected to grow in the next five years driven mainly by sweet wines. The wines category is the smallest product category both in volumes and value.
Afdis, as with many other local businesses, is still bearing the brunt of cheap imports from neighbouring countries. Due to waning disposable incomes, consumers are resorting to cheaper imports and at times dangerous substances. “It does affect our market if money is not spent on our products. We are trying to work with the Ministry of Health and Child Care and other officials to ensure that proper alcoholic products are sold out there. But that is also a sign of the times in terms of disposable incomes.
“People are lurching onto anything just to get them drunk, but we will continue offering authentic products,” explained Mr Gombera
