Afdis reports $7m PAT for the half-year

BY FIDELITY MHLANGA

Wines and spirits maker African Distillers Limited (Afdis) yesterday said it’s profit-after-tax for the six months to

December more than doubled to $7 million from $2,7 million in the prior year, buoyed by higher revenue and cost containment.

Revenue was up 57% to $25,9 million from $16,4 million, whereas operating income was up 130% to $9,3 million from $4 million.

“The company posted a good set of results as it continues to enjoy growth in volumes, revenues and profits despite the deteriorating macro-economic conditions. Demand remained firm, but could not be fully satisfied due to severe foreign currency shortages,” Afdis chairman Pearson Gowero said.

Operating income increased to $9,3 million, a growth of 130% on the prior year.

Total assets grew to $44,6 million from $35,6 million, while liabilities rose to $15,3 from $14,7 million.

“This strong performance is attributed to volume and revenue growth as well as value-chain cost management. Expanded margins were as result of value chain distortions emanating from foreign currency shortages,” Gowero
said.

Volumes increased by 40% compared to prior year, with ready-to-drink segment registering 55% growth, followed by spirits at 25% and wines at 22%.

Spirits continue to dominate revenue contribution, accounting for 61%, followed by RTDs at 29% and wines contributing the balance.

“The trading environment remains difficult. However, it is hoped that the national economic reform agenda will yield positive results. Management continues to focus on business sustainability, given the foreign currency scarcity,” he said.
Earnings per share grew 155% to 6,8 cents and shareholders received an interim dividend of three cents per share.

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