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Afdis sales volumes up 25pc

afdis

BH24 Reporter
Spirits distiller and wines maker African Distillers Limited recorded a 25 percent increase in sales volumes during the six months to December 31, 2016 which pushed up revenue by 10 percent to $14 million.

The company’s sales volumes rose to 4,8 million during the period under review. Afdis chairman Mr Pearson Gowero attributed the increase in sales and revenue to the company’s sustained efforts to counter competition through price reductions.

“This is as a result of continued pressure to reduce prices to counter competition and increase affordability,” he said.

As a result Mr Gowero said all product categories registered volumes growth with ciders doing well ahead of other segments at 40 percent over the prior year.

“Spirits in particular Viceroy brandy, showed strong recovery compared to previous periods. Increased market place acceptance of our wine brands spurred growth in this category, registering volume growth of 29 percent. Revenue from the ready-to-drink category continues to grow,” he said.

Profit for the period rose to $1,7 million from $1,5 million in the prior year as operating costs fell 8 percent to $4,09 million on the back of sustained focus on cost-cutting measures which pushed up operating income by 17 percent to $2,5 million.

The company’s headline earning per share rose 3 percent to 1,53 cents and interim dividend was up 33 percent to 0,20 cents per share.

Going forward Mr Gowero said management will focus on exploiting revenue growth opportunities as well as cost control measures to improve profitability.

Source :

bh24

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