Listed spirits and ciders manufacturer Afdis has seen volumes grow in the first quarter of 2024 ending June 30, 2023 driven by the ready-to-drink segment.
Afdis company secretary Mrs. Lydia Mutamuko in a statement said, “The company registered a volume growth of 11 percent above prior year mainly driven by the Ready-to-Drink (“RTD”) segment which grew by 26 percent, owing to improved product availability.”
In the same quarter, Afdis saw the spirits volume grow by 1 percent while wine category volume declined by 13 percent due to competition from cheaper imported brands and reduced consumer traffic in key account retail chain stores which impacted negatively on demand.
First quarter financials saw revenue grow by 143 percent in inflation adjusted terms against the same period last year, whilst in historic cost terms grew by 808 percent.
“In USD, turnover grew by 15 percent to US$12,5 million and revenue growth was due to increased volume and inflation related price adjustments,” Mutamuko added.
Afdis believes the economic environment still presents opportunities for business growth despite uncertainties around exchange rates and utilities availability.
Mutamuko said, “Management continues to put measures in place to exploit the available opportunities to sustain market share, revenue, and profitability growth. Focus will also be on product innovation, production efficiencies and cost containment measures.”
Afdis insisted that trading in a multi-currency environment enabled them to meet its foreign currency working capital requirements after it witnessed a considerable shift of business from formal retail chain stores to smaller traders as the use of USD currency continued to increase – Harare