AfDis remits $15,6m in tax

ZIMBABWE Stock Exchange-listed wines and spirits producer, African Distillers Limited (AfDis) has remitted $15,6 million to Government in taxes after its profit grew by 23 percent to $30,6 million in the full year ended June 30, 2018.

Chairman, Mr Pearson Gowero, said in a statement accompanying audited financial results for the period under review that despite foreign currency shortages, the company recorded strong performance that saw operating income rising by 75 percent to $7,1 million. He attributed growth in revenue to volume growth, margin expansion, favourable mix and cost containment.

Mr Gowero said during the period under review, demand for their products remained buoyant, particularly in the latter half. However, he acknowledged that the company was not able to fully meet demand.

During the period under review, readyto-drink (RTD) volumes grew, driven by ciders grew ahead of all categories, registering a 23 percent increase on prior year.

“Spirits continued to contribute the most revenue,” said Mr Gowero.

The wines and spirits producer manufacturer also registered a foreign exchange gain of $300 000 due to the weakening South African Rand. Interest expense of $560 000 was also incurred on overdue foreign payments.

“The impact was, however, mitigated by interest income of $10,4 million realised from money market investments,” said Mr Gowero.

The company’s net cash and investments stood at $20,3 million, a $12,8 million increase on prior year largely because of delays in settlement of foreign obligations. The company also declared a dividend of $1,50 per share, amounting to $1 748 057. Going forward, Mr Gowero said the company will continue to focus on growing the business and keeping the market fully supplied.