Published: 24 August 2017

Listed wines and spirits maker African Distillers Ltd (AFDIS) doubled its after-tax-profit to $2, 7 million in the six months to June 30, 2017 from $1, 1 million recorded in the same period last year.

The increase came on the back of a 13 percent rise in revenue, which was driven by volumes increases across all its product categories.

Said chairman Mr Pearson Gowero in a statement accompanying the results today: "All three product categories registered double digit growth in volume, with wines leading the pack at 29 percent.

"Spirits continued to be the major revenue contributor at 66 percent. Ready-to-drink, ciders and spirit coolers which contributed 24 percent to total revenue, registered a 22 percent volume growth".

The company's revenue therefore pumped up to $24, 9 million compared to $22, 04 million in the prior comparable period. But the revenue gain was also driven by a reduction in overheads, management said.

AFDIS suffered a net exchange loss of $360 000 on the back of a significant foreign currency - South African rand - exposure of $2, 2 million.

Reluctantly, net income interest was down by $140 000.

The chairman said the company expects to benefit from increased disposable incomes due to a better agricultural output last season. But the foreign currency shortages will still haunt the business going forward, he said.

The board has recommended a final dividend of 0.45cents per share, resulting in a total dividend of 0.65c per share for the year.
- bh24

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