Pure Simango, Staff Writer 
AFRICAN Distillers (Afdis) says its wine sales volume grew by 67 percent during the third quarter ended December 31, 2021, following the commissioning of a local production project during the period.
The spirits maker and distributor invested in the local production of some imported products to ensure improved business profitability and reduced foreign currency requirements.
The firm registered a volume growth of 32 percent for the quarter ended December 31, 2021 and 48 percent for the nine months compared to the same prior year period.
“Wines volume grew by 67 percent mainly driven by 4th Street due to improved availability and affordability following the local production project which was commissioned in the quarter under review,” Afdis said in a trading update.
The firm registered a volume growth of 32 percent for the quarter ended December 31, 2021 and 48 percent for the nine months compared to the same prior year period.
Spirits and ready to drink volumes grew 17 percent and 41 percent respectively as the growth in these categories was curtailed by supply constraints caused by glass pack shortages in the region.
In terms of financial performance, Afdis’ revenue grew by 57 percent for the quarter and 52 percent for the nine months in inflation-adjusted terms over last year as a result of volume growth emanating from firm demand over the festive season.
In historic terms, revenue grew by 148 percent and 159 percent for the quarter and nine months respectively.
“The company continues to leverage on foreign currency generated from trade to ensure continuous supply of imported inputs and to contain supply chain costs,” Afdis said.
The group said the trading environment for the quarter under review was stable and the relaxation of Covid-19 lockdown restrictions resulted in increased economic activity.
Afdis noted that consumer spending was further improved by increased activity in the key sectors of the economy such as agriculture, mining and infrastructure projects.
“The country, however, experienced a fourth wave of Covid-19 towards the tail end of the quarter which resulted in some disruptions to business operations as it led to higher employee absenteeism during periods of high infections,” the firm said.
Afdis said it continues to implement Covid-19 mitigatory measures to ensure business continuity.
In the outlook, Afdis said it will continue to benefit from the growth in key sectors of the economy despite the high inflation, depreciating exchange rate and the Covid-19 effects.
