HARARE: Zimbabwe Stock Exchange-listed alcoholic beverage maker, African Distillers Limited (Afdis) has recorded a 5% growth in revenue to $25 million for the year ended June 30 2015 due to increased volumes, value chain cost reduction activities and the depreciating rand. In the period under review after-tax profit increased to $3,1 million from $2,1 million in 2014.
In a statement accompanying the company’s audited financial results for the year-ended June 30 2015, Afdis board chairman Joe Mutizwa said the company delivered a strong set of results in a very difficult economic and trading environment.
Mutizwa said revenue growth in the last half slowed down due to rapidly declining consumer disposable income. However, the company continues to exploit market opportunities to enhance shareholder value into the future.a
“Revenue at $25 million grew by $1,1 million and is 5% above prior year. Operating income at $3,8 million is 28% above last year due to increased volume, value chain cost-reduction activities and the depreciated rand,” Mutizwa said.
He said the reduction in finance cost by 67% to $0,07 million was driven significantly by lower interest rates used for foreign credit facilities.
During the period under review, volumes grew by 18% due to increased contribution of relatively lower priced ciders and targeted market place price interventions taken in order to protect market share.
“The 18% volume growth reflects the successful localisation of ciders, which grew by an impressive 56% and are expected to spearhead the business future volume growth strategy. Spirits, which grew by 8% in an overall decline segment, remain a major contributor to the business,” he said.
However, the group said further economic decline seems inevitable in the short term. The company will, however, continue to focus on delivering growth and value for its shareholders volume and revenue growth, cost containment and improved efficiencies, product development and innovation. During the period under review, the company declared a final dividend of 0,36 cents per share.
