Afdis posts $41 billion annual revenue

LISTED spirits and wines producer, African Distillers (Afdis) posted a revenue increase of 56 percent to ZW$41 billion with operating income increasing by 15 percent to ZW$5,4 billion for the year ended March 31, 2023 as it anticipates opportunities for growth.

The firm said in historical cost terms, revenue increased by 418 percent to ZW$34,2 billion while operating income increased by 316 percent to ZW$7,5 billion.

“Revenue growth was driven by increased volume. Cost containment measures were in place over the period. However, cost pressures were experienced in distribution, fuel and power, payroll, and maintenance,” it said.

“In order to give context to the financial results, the board estimates that in United States dollars terms, revenue increased by 15 percent to US$49,4 million and operating income was at US$8,5 million.”

Volume growth was strong at 18 percent above the prior year mainly driven by the ready to drink (“RTD”) segment, which grew by 23 percent.

Wines and spirits volumes grew by 16 percent and 14 percent respectively.

The increase in volume was due to improved product availability, increased market penetration, and promotional activity.

The firm said the trading environment is envisaged to remain challenging and uncertain, but, it anticipates that there will be opportunities for business growth.-chronicle