African Distillers (Zimbabwe) – HY22 inflation adjusted revenue increased by 48% to ZW$14.9 billion

By Published On: November 4th, 2022Categories: Corporate announcement, Earnings

CHAIRMAN’S STATEMENT

Overview
The trading environment for the period under review was challenging, characterised by rising inflation, high interest rates and supply chain disruptions. The government introduced initiatives to reduce ZW$ liquidity and stabilise the exchange rate in the last quarter. The reduction in ZW$ liquidity resulted in the softening of demand for goods and services in supermarkets whilst increasing US dollar transactions in general trade.

Trading summary
The Company recorded a volume growth of 11% compared to prior year. Wine volume grew by 24% driven by improved availability and affordability of some brands which are now packaged locally. Spirit and Ready to Drink (“RTD”) volumes grew by 9% and 11% respectively driven by renewed focus on direct sales distribution.

Financial performance
In inflation adjusted terms, revenue increased by 48% to ZW$14.9 billion whilst operating income increased by 128% to ZW$2.0 billion. In historic cost terms, revenue increased by 369% to ZW$11.4 billion whilst operating income increased by 463% to ZW$2.7 billion. Revenue growth in both inflation and historical terms was due to higher volume, favourable mix and replacement cost-based pricing while operating profit increased due to cost management and improved margins.

Future prospects
The operating environment is set to remain challenging, with uncertainty on power supply and inflation. There are however opportunities for growth anchored on increased economic activity resulting from mining, agriculture, infrastructure projects, the forthcoming elections and relaxed Covid 19 restrictions. The Company will continue to focus on product innovation, market share growth, production efficiencies and cost containment measures.

Dividend
The board has recommended an interim dividend of US$0.0025 per share, amounting to US$299 thousand.

M M Valela

Chairman

DIVIDEND DECLARATION
Notice is hereby given that the Board of Directors declared an interim dividend, number 94, of US$0.0025 per share payable in respect of all the qualifying ordinary shares of the Company. This dividend is in respect of the half year ended 30 September 2022.

Final Dividend
Dividend Number : 94
Announcement Date 03 November 2022
Record Date 18 November 2022
Last Date to Trade Cum Dividend 15 November 2022
Ex-Dividend Date 16 November 2022
Payment Date 15 December 2022
Dividend Amount US$299 122
Dividend per Share US$0.0025

L Mutamuko

Company Secretary


The contents of the post above were obtained from third parties, which We, AfricanFinancials, believe to be reliable. However, We do not guarantee their accuracy and the above information may be in condensed form. The reader is encouraged to refer to the original source of the information, which, in most cases, is in PDF format and on the originating company's letterhead. While We endeavour to replicate the original content accurately, We cannot guarantee the absence of errors in the above article and We disclaim any liability regarding reliance on information provided in this article.