African Distillers records US$25,7m revenue

LISTED spirits and wines producer, African Distillers (AfDis) posted a half-year turnover of US$25,7 million, with management planning on focusing more on supplying its full range of products to the market, identifying opportunities to grow, defend market share and improve profitability, chairman Matlhogonolo Valela said.

The firm recorded a volume growth of 11 percent above prior year benefiting from good product availability across all key brands, intensified product distribution and brand innovation.

In its financials for the half year ended 31 September, the spirits category grew by eight percent leveraging on the premiumisation of the Whitestone brand and firm demand on the affordable range.

Wine volume grew by seven percent driven by increased market penetration in the second quarter while the Ready to Drink (“RTD”) segment registered a growth of 14 percent despite competition from lower priced smuggled imports.

In inflation-adjusted terms, the firm noted that revenue increased by 156 percent to $134 billion whilst operating income increased by 311 percent to $28,3 billion.

In historic cost terms, revenue increased by 861 percent to $109,5 billion whilst operating income increased by 1 063 percent to $31,5 billion.

“In US dollar, turnover for the half year was at US$25,7 million. Revenue growth in both inflation-adjusted and historical terms was driven by the higher volume, favourable sales mix, and replacement cost-based pricing while operating profit increased due to volume growth and strict cost containment measures.”

“Management continues to focus on supplying its full range of products to the market, identifying opportunities to grow, defend market share and improve profitability through product innovation, production efficiencies and cost control.”-chronicle