Zimbabwe Stock Exchange listed company African Distillers Limited (AFDS) cash balances for the year ended 31 December 2017 were at $13.1 million, an increase of $9 million on the prior year.
According to the group chairperson Pearson Gowero, the spirit segment continued to be the dominant contributor to total revenue.
“While RTDs (Ready to Drink) grew by 2% over prior the year, total volume declined by 5% due to intermittent shortages.
“The spirit segment continued to be the dominant contributor to total revenue, followed by RTDs and wines.
“Of significance is the whiskey category which grew by 7%, aided by the newly introduced Gold Blend Black, ”he said.
Gowero also noted that the group revenue increased by 18%. Revenue increased by 18% to $16.5 million.
“Trading margins improved by 6% due to value chain management and product mix. Operating income rose by 62% to $4 million,” said Gowero
The Company incurred a foreign exchange loss of $0.4 million due to the firming South African Rand compounded by the delay in settling foreign creditors occasioned by foreign currency shortages.
Finance income of $0.1 million, earned from short-term investments partly mitigated the loss.
“Demand for the Company’s products remained buoyant but could not be fully satisfied due to the inconsistent supply of
finished products owing to the unavailability of foreign currency,” said Gowero.
Meanwhile, the Board has recommended an interim dividend of 0.40 cents per share.
