African Distillers revenue jumps 40% as sales volumes rise
Afdis is accelerating production capacity investments, with US$6.3 million in capital expenditure as it prepares for further demand growth and new project commissioning.
ZIMBABWE – African Distillers Limited (Afdis) has reported a 40% increase in revenue to US$56.5 million for the half-year ended September 30, 2026, supported by higher consumer spending, increased sales volumes and efforts to curb illicit alcohol trade in Zimbabwe.
Operating income rose 23% to US$7.1 million, driven by stronger volumes, an improved product mix and disciplined pricing, despite elevated operating costs.
In its unaudited financial results for the six months, Afdis Chairman Matlhogonolo Mothibedi Valela said the company recorded growth across all major product categories, reflecting the effectiveness of its market execution and distribution strategies.
“Wines grew by 65 percent, Ready-to-Drink (RTD) products by 39 percent and Spirits by 24 percent. This performance reflected sustained market execution, targeted brand investment and an enhanced route-to-market strategy,” he said.
Total sales volumes increased by 35% compared with the corresponding period last year, providing additional impetus for production expansion and investment in beverage manufacturing.
The company attributed its performance partly to increased consumer spending and the clampdown on illicit alcohol trade, which has strengthened the formal market.
However, higher logistics costs and a strengthening South African rand continued to put pressure on operating expenditure. Management said it was focusing on improving distribution efficiency, maintaining product availability and keeping prices affordable.
Afdis is also expanding its production capacity to accommodate growing demand. Total assets increased by 26% to US$46 million during the period, while capital expenditure reached US$6.3 million as the company advanced its capacity expansion programme.
Valela said the investments would improve production capabilities and operational efficiency while addressing constraints across the business.
“These strategic investments are expected to unlock critical production capacity, improve operational flexibility and ease bottlenecks across the company’s value chains,” he said.
Several expansion projects are scheduled for commissioning in the fourth quarter, with the company expecting them to support higher production volumes, product innovation and improved responsiveness to market demand.
Afdis said its growth prospects were supported by continued expansion in the mining sector, sustained diaspora remittances and expectations of a stable macroeconomic environment.
However, the company identified several external risks that could affect its operating environment, including the forecast Super El Niño, which could disrupt the 2026/27 agricultural season.
Geopolitical tensions in the Middle East were also highlighted as a concern, with higher oil prices contributing to increased input costs and global market volatility. These developments could raise production and distribution expenses while putting pressure on household purchasing power.
The company said it remained committed to sustainable development, managing environmental and social risks across its operations in accordance with applicable legislation and international benchmarks.
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