NEW: Afdis records 5pc growth

15 May, 2024 - 12:05 0 Views
NEW: Afdis records 5pc growth

The Sunday Mail

Online Reporter

LISTED wine and spirits manufacturer, African Distillers Limited (Afdis), is pinning hopes on improved economic activity anchored by infrastructural development, tourism and mining.

This comes as the firm posted overall volume growth of one percent compared to last year, as consumer demand faltered due to an influx of cheaper imports and illicit products on the market.

The ready-to-drink segment grew five percent, driven by improved product availability on ciders and consumer activations, while the spirit category took a two percent dip.

Wine performance remained stagnant in comparison to the prior year.

Given the unrelenting competition from the informal market, Afdis indicated that it would continue to craft measures to defend market share, improve volumes and sustain profitability growth.

According to Afdis, the period saw a continued increase in illicit products alongside a rise in irregular imports from neighbouring countries, which are usually not compliant with regulations.

In that regard, Afdis has hinted at directing more efforts at product innovation and production efficiencies.

The listed wine and spirits manufacturer said consumer spending in the local economy will be spurred by increased activity in mining, Government-initiated infrastructure rehabilitation projects, tourism and improved diaspora remittances.

The healthier performance of these critical sectors of the economy has lately been availing disposable income for consumption.

“The economy is projected to continue growing, anchored on infrastructural development, tourism, mining activities, and increased diaspora remittances.

“This growth will however be slowed down by the El-Nino induced drought being experienced in the country and the continued fall of global metal prices,” said Afdis chairman, Mr Matlhogonolo Valela, in the full year financials to 31 March 2024.

He commended Government efforts on stabilising the macroeconomic environment, adding that the new currency would be critical in reducing inflation levels and fostering exchange rate stability.

“The company is hopeful that the newly introduced currency, Zimbabwe Gold (ZiG), will help restore stability in exchange rates and tame inflation,” he said.

Operationally, Afdis’ revenue and costs contribution in US dollars increased to above 80 percent over the period under review.

Revenue for the year to March 2024 grew to US$51,8 million from US$41 million in the prior year, while operating income rose to US$6,6 million from US$5,4 million.

The company declared a final dividend of US$0.0060 per share, amounting to US$1 067 646.

An interim dividend of US$0.0030 per share was paid in December 2023, bringing the total dividend to US$0.0090 per share.

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