AFRICAN Distillers Limited (Afdis) has recorded over 100% increase in after-tax profit to $2,1 million for the year ended June 30 2014 spurred by a growth in volume, cost management and improved productivity.
In 2013 after-tax profit was $808 767.
The strong performance was achieved in a difficult trading environment characterised by a slowdown in consumer spending and tight liquidity conditions, board chairman Joe Mutizwa said in a statement accompanying the company’s audited financial results.
Revenue grew to $23,9 million from $22,1 million in 2013, while the operating income increased to $2,9 million from $1,6 million in 2013.
Volumes grew by 10% on prior year to 6,1 million litres. Of that local product portfolio contributed 71% up from 58% last year.
Mutizwa attributed the growth to firm demand for brown spirits in the second half of the year.
“The company continues on a path to sustainable growth as it asserts itself in the market as the leader in the fine spirits, ciders and wines segment. The product portfolio has been expanded with the addition of ready-to-drink offerings such as the recently launched Esprit,” he said.
In the period under review turnover for the year amounted to $35 million which was 18% up from prior year.
Earnings before interest and tax (EBIT) grew by 80% to $3 million. Gross margin improved to 47% attributed to a favourable product mix dominated by a significant increase in brown spirits volume.
During the period under review, EBIT margin improved from 7% last year to 13%, indicating strong retention of value created. Net finance cost were 30% below last year. Earnings per share grew to 2,01 cents from 0,85 cents .