Categories: Stories

Consumptive spending boosts Afdis sales

Hyperinflation, which has led to consumptive spending, proved a major boost for African Distillers which saw its sales almost quadruple from $4.3 billion last year to $16.5 billion during the year ended June.

The company says demand for its products remained strong, probably as people tried to drown their sorrows because spirits appear to be cheaper than any other alcoholic and non alcoholic drinks yet they are more intoxicating.

Afdis says though economic conditions could worsen and economic policy might continue to promote consumptive spending, it is concerned about the deepening level of poverty, rising unemployment and the shortage of cash (which has since been resolved) as this is likely to impact on its business in the longer term.

The company’s operating profit increased from $1.1 billion to $6.2 billion with net profit shooting up from $671.1 million to $3.8 billion.

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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.

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