AFRICAN Distillers Limited (Afdis) has said ciders and its whisky performed very well for the half year ended December 31, 2014 compared to the same period in 2013.
BY VICTORIA MTOMBA
The group posted a $1,9 million profit during the period under review.
In an interview yesterday, chief executive officer Cecil Gombera said: “Savanna and Hunters have been well accepted in the market while whisky was also doing very well.”
Afdis chairman Joe Mtizwa said sales volumes increased by 20% to 3,8 million litres while gross sales were up by 13% to $20,8 million.
Mtizwa said total spirit category remains a significant contributor to overall business performance.
“Growth in this sector was augmented by the performance of locally produced ciders resulted in overall 20% growth in volumes. Volumes grew ahead of turnover due to increased contribution of the relatively lower priced ciders,” he said.
Turnover grew by 13% to $20,8 million on a volume growth of 20%.Operating income at $2,6 million grew by 29% on prior year due to value chain cost reduction initiatives and favourable rand exchange rate movement over the period.
Net finances for the group were 81% down compared to the same period last year at $37 000 due to reduced borrowings and an improved working capital position.
Mtizwa said the group expects the environment to remain difficult but it targets a sales growth hinged on sustaining current spirit market share and leveraging on the growth of the locally produced cider.
Increased profitability through cost management and improved production efficiencies.
The company last year commissioned a new cider plant that it expected to improve output by 59%.
The new plant improved output for the company to 54 million litres from 34 million litres. The new packaging line produces 4 200 litres per hour up from what the company used to produce 1, 300litres.
Afdis now manufactures the bulk of the products it markets. Currently it operates six depots in Bulawayo, Harare, Kwekwe, Masvingo, Mutare and Victoria Falls.
The new plant has the capacity to do 1 500 bottles per hour and this will contribute to the reduction in prices to 22% and 25%.