Wines and spirits manufacturer African Distillers Limited (Afdis) is progressing with its US$8 million new packaging line project, first announced in February, with commissioning scheduled for the financial year ending March 31, 2027, as the company moves to expand capacity.
The investment comes as Afdis accelerates portfolio expansion to match shifting consumer preferences, with rising demand for ready-to-drink beverages and more affordable product ranges.
“Capital expenditure of US$4,4 million was incurred during the year, directed towards modernising plant and equipment, improving reliability, and enhancing operational efficiency. These investments strengthened the operating platform and supported improved throughput and cost efficiency,” said chairperson Matlhogonolo Valela in a statement accompanying results for the year ended March 31, 2026.
The new packaging line is expected to unlock additional capacity, improve production flexibility, and ease existing bottlenecks, particularly in high-growth product categories.
Afdis noted that access to foreign currency remains critical to smooth operations and is expected to remain a key factor going forward.
Despite this, the company maintained a strong liquidity position, reporting US$1,95 in current assets for every US$1 of short-term debt, indicating sufficient capacity to support its investment programme.
Short-term borrowings included a US$2 million unsecured loan from majority shareholder Delta Corporation at 9,5% interest, up from US$1,2 million the previous year. Afdis also held bank loans of US$2,5 million, unchanged year-on-year, with interest easing to 7,1% from 8,5%.
Management said it remains focused on sustainable growth through product innovation, capacity expansion, and market development, supported by activity in agriculture, mining, diaspora remittances, and infrastructure investment.
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Valela also flagged global geopolitical tensions, particularly in the Middle East, as a risk factor, noting their impact on fuel prices and input costs. The company said it is implementing mitigation measures.
During the period, total volumes grew 50% year-on-year, driven by strong demand across all categories and reduced pressure from grey market activity. Ready-to-drink volumes rose 62%, wines 57%, and spirits 34%.
Revenue increased 56% to US$93,2 million, supported by volume growth, improved product mix, and pricing discipline. Operating income rose 118% to US$12,2 million due to stronger operating leverage, fixed cost absorption, and tighter cost control.
Profit after tax increased to US$7,66 million from US$5,12 million in the prior year.
Afdis said the business delivered a strong performance, benefiting from firm consumer demand and improved product availability, while acknowledging regulatory efforts to curb illicit trade.
Total assets rose 37% to US$36,8 million.
