Ciders, local brands boost Afdis volumes
Zimbabwe Stock Exchange (ZSE)-listed spirits and wines maker African Distillers’ volume for the quarter ended December 31, 2021 grew 32 percent largely driven by improved supply of ciders and other locally produced brands.
Afdis manufactures, distributes and markets branded spirits, ciders and wines for both Zimbabwe and export markets and the company has been focusing on localising some of its brands to minimise import costs.
According to a trading update, Afdis volumes for the nine months to December 31, 2021 also grew 48 percent on the back of better access to imported inp“Afdis grew by 32 percent for the quarter and 48 percent for the nine months, driven by improved supply of ciders and other locally produced brands, on the back of better access to imported
inputs,” Mr Matlhogonolo Valela, the group’s chairman said in a trading update for Delta.
Afdis is nearing completion of its new US$1 million cider fermentation plant which is expected to commence operations in the first quarter of the year.
The plant is aimed at cutting costs on local production of ciders, as it has been relying on imported raw materials.
In its financial results for the six months to September 30, 2021, Afdis’ profit slumped 71 percent to $46 million from $156,2 million reported in the same period the previous year, dented by rise in sale of illegal alcohol which have recently flooded the market.
Afdis chairman Mr Valela highlighted that localisation of some products and product innovation would sustain the operations of the company in the wake of the disrupted market.
Overall volumes in the period under review increased 66 percent over the same period the previous year, with wines and spirits volumes growing by 88 percent and 34 percent respectively.
The ready to drink segment volumes grew 116 percent compared to the prior period, achieving the largest growth of the three group’s categories due to improved availability of ciders.
The company’s revenue increased 55 percent to $2,6 billion compared to $1,7 billion reported in the comparable prior year period.
Operating income, however, declined to $226,3 million in the period under review from $418,7 million reported in 2020.-The Herald
