Zimbabwe: African Distillers Sales Volumes Surge As Revenue Hits U.S.$56.5m

African Distillers Limited (AFDIS) recorded a 35 percent increase in sales volumes in the six months to September driven by strong growth across its wines, ready-to-drink beverages and spirits segments.

Wines led the growth, with sales volumes rising by 65 percent compared to the same period last year.

Ready-to-drink (RTD) beverages increased by 39 percent, while spirits recorded a 24 percent growth.

In his chairman's statement accompanying the financial results, Matlhogonolo Mothibedi Valela attributed the performance to sustained market execution, increased investment in brands and improvements in the company's distribution strategy.

"This performance reflected sustained market execution, targeted brand investment and an enhanced route-to-market strategy," Valela said.

He also credited increased consumer spending and a crackdown on the illicit trade in alcoholic beverages for supporting the company's growth.

"The Company delivered a strong performance for the half year ended 30 September 2026, benefitting from the growth in consumer spending. It also continued to benefit from the clampdown on illicit trade in alcoholic beverages," he said.

The increase in sales volumes translated into a 40 percent rise in revenue to US$56.5 million, up from US$40.4 million recorded during the corresponding period last year.

Operating income grew by 23 percent to US$7.1 million, while total comprehensive income increased by 36 percent to US$4.9 million.

However, the company continued to face cost pressures arising from higher logistics expenses and a strengthening South African rand.

Valela said management was working to contain these pressures through more efficient distribution channels, improved product availability and efforts to keep products affordable.

"Management remained focused on optimising distribution channels, maintaining product availability and preserving portfolio affordability," he said.

Meanwhile, African Distillers invested US$6.3 million in capital expenditure during the period as it moves to expand production capacity and improve operational efficiency.

Valela said projects arising from the investment were expected to be commissioned from the fourth quarter, easing production constraints and supporting future growth.

"These strategic investments are expected to unlock critical production capacity, improve operational flexibility and ease bottlenecks across the company's value chains," he said.

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