Improved foreign currency supply positively impacts on AfDis operations

Author Name
Respect Gwenzi
Author
Stock Market 1 week ago
  • Quarterly volumes up 28%
  • Revenue up 15%
  • Operations smoothened by improved accessibly to forex facilitated by the Forex Auction

Harare – Liquor manufacturer and distributor African Distillers Limited has posted improved volumes in spirits and ready-to-drink (RTD) operations, as well as a jump in revenue for the third quarter, ended 30 September 2020 on the back of improved foreign currency supply.

According to a trading update on the company’s operations for the period under review, AfDis registered an average volume growth of 28% compared to the same period last year.

Spirits and Ready-To-Drink (RTD) volumes grew by 43% and 24% respectively while wines declined by 38% over the comparative period.

The revenue for the first quarter came in at ZWL456million representing 15% in inflation-adjusted terms compared to the same period last year.

In a statement accompanying the results, company board chairperson, Mr Mutamuko revealed that “In addition to the growth in volume, a favourable sales mix which favoured higher valued sprits largely contributed to the good revenue performance.”

All this, the company says is founded on the increased accessibility to foreign currency that has come partly as a result of the foreign currency auction introduced by the central bank in June 2020 and the increased ability by the customers to settle bills in foreign currency.

“The ability of customers to settle in foreign currency and the foreign currency auction system has brought the well-needed relief to the industry and the economy at large. The Company was able to meet all its demand and satisfy the market requirements owing to the improved foreign currency supply,” said the chairperson.

The chairperson, however, lamented the effects of COVID 19 on business as it weighed down on the performance despite it being positive.

“COVID-19 pandemic negatively impacted the economy in the quarter under review as restrictions and prohibitions on travel and social gatherings affected overall demand.”

Going forward, the company is banking on the consistency of monetary and fiscal measures put in place by the government to continue the positive impact on the business while they report that their management will simultaneously “focus on the protection of market share, innovation and cost management to enhance shareholder value.”

AfDis manufactures popular liquor brands that include Viceroy, GoldBlend, Chateau, 4th Street and Green Valley.

Equity Axis News.


Stock Market ● 6 days ago
RioZim withdraws cautionary announcement, agrees payment structure with RBZ

Delays in payments for gold deliveries strained the Company’s working capital Agreement reached with RBZ and Fidelity will help revitalize operations RioZim has an extensive portfolio of resources in gold, base metals, diamonds, coal and chrome HARARE – ZSE listed, gold producer RioZim Limited has withdrawn the cautionary announcements dated 15 June 2020 and 8 July 2020 regarding the impass...


Stock Market ● 1 week ago
ZPI delists from local bourse on ZHL Acquisition

Harare – Real estate holding company, Zimbabwe Property Investments Limited (ZPI) has voluntarily delisted from the Zimbabwe Stock Exchange (ZSE) with effect from the 10th of November 2020. This comes after an offer by ZPI’s parent company Zimre Holdings Limited (ZHL) to minority shareholders to acquire their shares in exchange for newly issued shares in ZHL which led to the parent holding 97,6%...

Stock Market ● 1 week ago
Masimba Holdings’ construction volume increases in third quarter

A number of construction works were completed during the period PAT up 15.7% ahead of prior year Full-year results expected to be ‘significantly’ ahead of the comparative period Harare – Masimba Holdings Limited, a Contracting and Industrial group in Zimbabwe, providing engineering and infrastructure solutions to the agricultural, commercial and corporate sector as well as housing, mini...

Analysis ● 1 week ago
PPC overcomes COVID-19 woes with strong sales recovery

Sales volumes rose by a fifth in October YoY Experienced a muted sales in April and May 2020 due to the COVID-19 Cement volumes for PPC Zimbabwe grew by m approximately 5% Harare – JSE-listed Pretoria Portland Cement (PPC) said sales volumes have bounced back in the three months July to September 2020, showing a recovery of 20% to 25% year-on-year. The Group has operations in Zimbabwe thou...

Stock Market ● 2 weeks ago
BAT sales volumes slump 8% on depressed consumer spend, COVID 19

Harare – Zimbabwe Stock Exchange Listed cigarettes producer, British American Tobacco (BAT) has recorded an 8% decrease in sales volumes for the nine months ended 30 September 2020 mainly due to reduced consumer spending and the adverse impact of COVID 19. BAT produces some of Zimbabwe’s best-known cigarette products which include Madison, Everest, Dunhill, Newbury, Kingsgate and Ascot. In March...