African Distillers Limited (Afdis) total income jumped 51 percent to US$7,7 million, on the back of a 56 percent jump in revenue during the year to March 31, 2026.
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The beverage maker benefitted from firm consumer demand, reduced pressure from the illicit alcohol trade and improved product availability.
Revenue climbed from US$45,660 million to US$93,2 million during the review period.
Operating income more than doubled to US$12,2 million from US$5,6 million in the previous year, driving total comprehensive income by 51 percent to US$7,7 million.
Following the strong outturn, basic earnings per share increased to 6,31 US cents from 4,26 cents.
The Zimbabwe Stock Exchange-listed firm reported that total volumes grew by 50 percent during the period, driven by broad-based growth across its Ready-to-Drink (RTD), wine, and spirits portfolios.
RTD products recorded the strongest growth, rising 62 percent, while wines increased by 57 percent and spirits volumes advanced by 34 percent. Chairman Mr Mthandazo Valela said the company operated in a more stable macroeconomic environment, marked by steady exchange rates and contained inflation.
“The prevailing tight monetary policy framework continued to underpin macroeconomic stability and supported improved business planning and execution,” he said.
He added that strong activity in agriculture and mining—particularly record tobacco output and robust gold production—helped support foreign currency inflows and aggregate demand within the economy.
“The business delivered a strong performance, benefiting from firm consumer demand and improved product availability,” Mr Valela said.
“The company acknowledges and values the actions being taken by authorities and regulatory bodies against illicit trade.”
The results reflect growing resilience within Zimbabwe’s formal consumer sector, especially among companies able to secure foreign currency, maintain production consistency, and defend market share against informal competition.
This performance comes at a time when formal manufacturers have increasingly complained about smuggling and counterfeit products eroding volumes and tax revenues.
Afdis remitted US$28.6 million in taxes during the year, up 42 percent from the prior period.
The group also accelerated capital expenditure, spending US$4.4 million on plant modernisation and operational upgrades, compared to US$1.8 million in the previous year.
Management stated that these investments were aimed at improving reliability, throughput, and production efficiency.
The company is now moving ahead with the acquisition of a new US$8 million packaging line, which is expected to be commissioned in the next financial year.
Afdis noted that the investment would unlock additional capacity and ease production bottlenecks in high-growth product categories.
Inventories rose sharply to US$16.4 million from US$11,4 million, while total assets increased 37 percent to US$36,8 million. Cash generated from operations improved significantly to US$7,5 million from US$2,5 million previously, aided by stronger trading performance and lower overdraft exposure. The company’s bank overdraft position narrowed to US$769,112 from nearly US$3 million a year earlier.
Afdis declared a final dividend of US$0,010 per share, bringing the total dividend for the year to US$0,015 per share —an increase of 50 percent from the prior year.
However, despite the strong operational performance, the company remains entangled in a tax dispute with the Zimbabwe Revenue Authority (ZIMRA) relating to taxes dating back to the 2019–2022 period.
According to the financial statements, ZIMRA issued assessments amounting to US$1.84 million, arguing that certain taxes should have been settled entirely in foreign currency.
The company said it had already accumulated payments of US$1.82 million under the “pay now, argue later” principle while continuing to appeal portions of the assessments and court judgments. Afdis warned that the matter “could have a material impact on the company’s operations if it materialises as per the extant assessments.”
Looking ahead, management said the business will continue focusing on product innovation, capacity expansion, and market development while closely monitoring geopolitical tensions in the Middle East that could raise fuel and input costs globally.-herald
