HARARE – Zimbabwean beverages producer African Distillers Limited (Afdis) has reported a robust start to its 2026 financial year after first-quarter revenue climbed 47 percent to US$27.9 million, reflecting strong consumer demand, higher product availability and sustained growth across its wines, spirits and ready-to-drink (RTD) portfolio.
In a trading update for the three months ended June 30, 2026, the company said a relatively stable macroeconomic environment, characterised by exchange rate stability, moderating inflation and tight monetary policy, created favourable conditions for consumer spending and business operations.
The improved operating environment translated into a 43 percent increase in overall sales volumes compared with the corresponding period last year, with all major product categories recording growth as consumers increasingly shifted towards formal retail channels amid a decline in illicit and grey market activity.
RTD beverages emerged as the company’s strongest-performing segment during the quarter, with volumes rising 48 percent year-on-year, underscoring continued consumer preference for convenience-oriented alcoholic beverages.
The wine portfolio also delivered an impressive performance, with volumes surging 80 percent, supported by sustained demand for value-driven brands such as 4th Street, Montello and Green Valley. Meanwhile, spirits volumes expanded by 32 percent, driven largely by strong sales of brown spirits, particularly Star Brandy, alongside improved product availability across key stock-keeping units.
Afdis attributed the broad-based growth to stronger market execution, consistent product supply and tighter enforcement measures against counterfeit and illegally traded alcoholic beverages, which have increasingly redirected demand towards formal manufacturers.
“The company delivered a strong performance during the quarter, with overall volumes increasing by 43 percent compared to the corresponding period last year. Growth was recorded across all product categories, supported by stable exchange rates, buoyant consumer spending, improved product availability and effective marketplace execution. The reduction in grey market activity also supported demand across the formal trade,” Company Secretary Lydia Mutamuko said in the trading update.
Despite the strong revenue performance, Afdis said the business continued to face mounting production cost pressures arising from higher fuel prices, increased packaging material costs and the appreciation of regional currencies, particularly the South African rand, which raised the cost of imported raw materials. The company also cited the impact of changes to Value Added Tax introduced in January this year as an additional cost driver.
Nevertheless, management said profitability remained resilient as higher production volumes improved operating leverage, while disciplined pricing strategies, product mix optimisation and strict cost management helped offset inflationary pressures.
The latest trading performance suggests that Zimbabwe’s formal alcoholic beverages market continues to recover, supported by improving consumer confidence and regulatory measures aimed at curbing the informal trade that has historically eroded volumes for licensed producers.
Looking ahead, Afdis expects the favourable trading environment to persist, underpinned by macroeconomic stability, easing borrowing costs and resilient consumer demand. The company said it will continue monitoring input cost movements, regional currency fluctuations and changes in the tax environment while focusing on expanding market share and improving margins.
In a sign of confidence in future demand, Afdis also announced plans to strengthen its manufacturing capacity through capital investment. The company intends to acquire an additional packaging line valued at US$8 million, a move expected to increase production capacity, improve operational efficiency and support long-term growth.
The investment signals management’s expectation that demand for branded alcoholic beverages will remain firm, positioning the company to capitalise on expanding opportunities within Zimbabwe’s formal consumer goods market while reinforcing its competitive position in the wines and spirits industry.
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