African Distillers Limited (Afdis) recorded a 47 percent revenue growth driven by soaring demand for wine and ready-to-drink (RTD) beverages,
In its trading update for the quarter ended 30 June 2026, the beverages manufacturer said overall sales volumes rose 43 percent compared to the same period last year.
Company secretary, Lydia Mutamuko said wine was the standout performer during the quarter, with strong growth recorded across the affordable segment.
"Wine volumes increased by 80 percent, supported by strong performance from the affordable segment, particularly the 4th Street, Montello and Green Valley brands," she said.
Ready-to-drink (RTD) beverages also posted robust growth, with volumes rising 48 percent on the back of sustained demand for ciders.
Spirits volumes increased 32 percent, driven by strong sales of brown spirits, particularly Star Brandy, and improved availability across key brands and pack sizes.
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The strong volume growth pushed quarterly revenue up 47 percent to US$27.9 million from the corresponding period last year.
“The revenue growth reflected sustained demand in the formal trade, supported by the stable operating environment and reduced grey market activity," she said.
Despite the strong top-line performance, Afdis said profitability remained under pressure from rising production costs.
Margins benefited from improved operating leverage and disciplined revenue management, but these gains were partly offset by higher fuel and packaging costs, as well as stronger regional currencies that increased the cost of imported raw materials.
To support growing demand, the company is investing US$8 million in an additional packaging line, building on the US$4.4 million invested in plant and equipment during the previous financial year.
"The operating environment continues to present growth opportunities, supported by stable exchange rates, sustained economic activity across key sectors, buoyant consumer spending and continued regulatory action against smuggled and counterfeit products," she said.