Reports 25% Increase in Dividend Despite Challenging Operating Environment

Published On: June 6, 2023Company: African Distillers Limited (
What was the estimated CPI for February and March 2023 due to the absence of official general price indices?
The estimated CPI for February and March 2023 was based on the exchange rate movement.

Chairman’s Statement

  • Operating environment was complex and uncertain due to high inflation, high interest rates, increased power supply outages
  • Measures introduced by government to reduce ZW$ liquidity due to stable foreign exchange rates
  • Acqusition of major partner, Distell Ltd by Heineken BV
  • Estimated Consumer Price Indices (CPIs) due to lack of official indices

Trading Summary

  • Volume growth of 18% above previous year driven by Ready-to-Drink segment
  • Wines and Spirits increased 16% and 14%, respectively
  • Increase due to product availability, increased market penetration, promotional activity

Financial Performance

  • Inflation adjusted revenue increased 56% to ZW$41 billion; operating income increased 15% to ZW$5.4 billion
  • In historical terms, revenue increased 418%; operating income increased 316%
  • Revenue growth driven by increased volume; cost containment efforts; cost pressures in power, payroll, maintenance
  • In US$ terms, revenue increased 15% to US$49.4 million; operating income at US$8.5 million

Future Prospects

  • Trading environment is challenging, uncertain; however, opportunities for business growth exist
  • Leveraging full product availability, market share protection, brand portfolio expansion for growth
  • Focus on production efficiencies, cost containment initiatives


  • Board has recommended final dividend of US$0.0050 per share
  • Interim dividend of US$0.0025 per share was paid in December 2022, total dividend of US$0.0075 per share

Useful links

About African Distillers Limited (

African Distillers Limited founded in 1944 is a Zimbabwean company in the beverages sector. It is the sole manufacturer and distributor of traditional, flavored, and blended spirits. African Distillers Limited is listed on the Zimbabwe Stock Exchange and is known for its diverse range of product offerings and high-quality manufacturing processes. The Company has six depots in Bulawayo, Harare, Kwekwe, Masvingo, Mutare and Victoria Falls.

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