Categories: Stories

Afdis profit doubles as Zimbabweans go for spirits

Spirit and winemaker, African Distillers’ after tax profit more than doubled from $1.11 million last year to $2.76 million in the six months to June, driven by a 13 percent increase in revenue.

Revenue in the half year period was up at $24.89 million compared to $22.04 million recorded during the same period in 2016, largely on volume increases which were complimented by a reduction in overheads.

“All three product categories registered double digit growth in volume, with wines leading the pack at 29 percent,” said chairman Pearson Gowero in a statement accompanying company results today.

“Spirits continued to be the major revenue contributor at 66 percent. Ready to Drink, ciders and spirit coolers which contributed 24 percent to total revenue, registered a 22 percent volume growth”.

The company incurred a net exchange loss of $360 000 due to a significant foreign currency (Rand) exposure of $2.2 million. The full impact of which was reduced by interest income of $140 000 earned from investment of surplus cash.

Cash generated from trading amounted to $4.8 million, a 64 percent increase on prior year.

Gowero said demand for product during the period under review was firm but the company could not fully satisfy the market due to intermittent product shortages as a result of severe foreign currency constraints.-The Source

(56 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

ZiG loses steam, falls against US dollar for five consecutive days

The Zimbabwe Gold fell against the United States dollar for five consecutive days from Monday…

November 22, 2024

Indian think tank says Starlink is a wolf in sheep’s clothing

An Indian think tank has described Starlink, a satellite internet service provider which recently entered…

November 18, 2024

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024

Zimbabwe among the top countries with the widest gap between the rich and poor

Zimbabwe is among the top 30 countries in the world with the widest gap between…

November 14, 2024

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024