African Distillers Limited, the producer of popular brands such as Viceroy, Nederburg and Hunters Dry, has reported a strong performance for the half-year ended September, buoyed by increased consumer spending and a clampdown on illicit alcohol imports.
The company’s sales volumes rose 43% compared to the same period last year, reflecting robust demand across all product categories. Wine volumes led the growth with a 59% increase, followed by ready-to-drink beverages at 47%, and spirits at 36%.
“This strong performance was driven by sustained demand across all categories, supported by improved consumer spending and the clampdown on informal imports and illicit products,” the company said in a statement.
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Revenue for the period jumped 54% to US$40 million, while operating income surged 280% to US$5.7 million, underscoring a significant rebound in profitability.
Afdis noted that the broader economy benefitted from higher activity in the mining and agricultural sectors, citing record gold prices and strong tobacco output as key drivers. However, the company cautioned that persistent electricity shortages, limited access to local currency, and high interest rates continued to constrain economic growth.
Despite these challenges, Afdis said it remains optimistic about the outlook, banking on stable demand, disciplined cost management, and the ongoing formalization of the beverages market to sustain momentum in the second half of the financial year.
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