ZIMBABWE Stock Exchange-listed branded wine and spirits manufacturer African Distillers Limited (Afdis) posted a $1,3 million profit for the half-year ended December 31, 2013 up from the same period last year due to increases in revenue during the period under review.
By Victoria Mtomba Business Reporter
In December 2012, the company said after-tax profit stood at $1 million.
Afdis’s revenue was up 11% to $18,4 million from $16,5 million during the period under review.
“Higher revenue growth was due to favourable sales mix which impacted positively on trading margins, thereby, resulting in an increased of 2%.
“Local product portfolio continues to grow enhancing revenues and margins,” the company said in a statement.
Earnings Before Interest Depreciation Taxes and Amortisation and operating income increased by 30% and 33% to settle at $2,2 million and $2 million respectively. Earnings per share increased by 27% to 1,38 cents.
Afdis said in a statement localisation of ciders was at advanced stage with machinery having been ordered and production was expected to start in the next financial year.
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The company will buy the machine from Germany which has a capacity to produce 27 000 bottles of ciders — Hunters and Savanna per hour locally.
Afdis would be using the $5 million that it received through the rights issue that was approved by shareholders in December last year to carry out its investments this year, the company said. The company said it will strengthen its brand portfolio and intensify investments into the business.
“The company is targeting sales growth and increased profitability into the future through cost effectiveness and improved production efficiencies and capabilities,” the company said.
