Ciders, Cheap Wines Demand Hits 80 Percent As Afdis Revenue Climbs 47 Percent

African Distillers Limited (Afdis) has announced a robust first-quarter performance, with revenue soaring by 47% to US$27.9 million, largely fueled by an 80% surge in demand for affordable ciders and wines. The company's latest quarterly report reveals that overall volumes increased by an impressive 43% compared to the same period last year, indicating a strong market reception for its products.

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Ready-to-Drink (RTD) volumes grew by 48% on prior year, driven by sustained cider demand. Wine volumes increased by 80%, supported by strong performance from the affordable segment, particularly the 4th Street, Montello and Green Valley brands.

This growth was broadly distributed across all product categories. Ready-to-Drink (RTD) volumes saw a significant 48% rise, primarily driven by sustained demand for ciders. Wine volumes also experienced an 80% increase, with particular strength noted in the affordable segment, including popular brands like 4th Street, Montello, and Green Valley. Spirit volumes grew by 32%, boosted by strong demand for brown spirits, notably Star Brandy, and improved product availability.

Company secretary Lydia Mutamuko attributed the strong performance to several factors, including stable exchange rates, buoyant consumer spending, enhanced product availability, and effective marketplace execution. The reduction in grey market activity also played a crucial role in bolstering demand within the formal trade. Afdis reported that margins benefited from improved operating leverage and disciplined revenue management, though this was partially offset by rising costs for fuel, packaging materials, and stronger regional currencies impacting imported inputs.

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The Company remains optimistic about the outlook for the remainder of the financial year. The operating environment continues to present growth opportunities, supported by stable exchange rates, sustained economic activity across key sectors, buoyant consumer spending and continued regulatory action against smuggled and counterfeit products.

Looking ahead, Afdis expresses optimism for the remainder of the financial year, citing continued growth opportunities stemming from a stable operating environment, sustained economic activity, and ongoing regulatory actions against smuggled and counterfeit products. However, management will remain vigilant in monitoring input cost pressures, currency fluctuations, and the impact of tax adjustments on profit margins.

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However, management will continue to monitor input cost pressures, including movements in regional currencies, fuel and packaging costs, and the impact of tax adjustments on margins.