African Distillers Limited (Afdis) delivered a strong set of results for the year ended 31 March 2026, underpinned by robust volume growth, disciplined cost management and strategic capacity investments, despite a challenging global environment.
Revenue rose 56% to US$93.2 million from US$59.7 million in the prior year, driven primarily by a 50% increase in total volumes. Growth was broad-based across the portfolio and supported by improved product availability, enhanced route-to-market execution, and reduced pressure from grey market activity. The Ready-to-Drink (RTD) category was the key growth engine, accounting for 57% of total volumes after increasing 62% year-on-year, led by strong performance of the Hunters cider brand and continued traction from the newly introduced spirit cooler range. Wine volumes grew 57% on the back of demand for affordable offerings, while Spirits volumes increased 34%, with brown spirits up 46% offsetting a 5% decline in white spirits as consumer preferences shifted.
The company’s improved operating leverage translated into significant margin expansion. Operating income grew 118% to US$12.2 million from US$5.6 million, reflecting disciplined cost management and fixed cost absorption. EBITDA increased to US$13.2 million from US$6.0 million. Profit before taxation rose 71% to US$10.7 million, while profit attributable to shareholders was US$7.7 million, up 51% from US$5.1 million. Basic earnings per share improved 47% to US6.31 cents, and headline earnings per share increased to US6.29 cents.
The balance sheet strengthened with total assets up 37% to US$36.8 million and cash and cash equivalents of US$1.2 million. Net asset value per share rose to US17.74 cents from US12.92 cents. The return on shareholders’ equity remained strong at 35%, and the operating margin improved to 13% from 9%. Reflecting confidence in future cash flows, the Board declared a total dividend of US1.50 cents per share, comprising an interim dividend of US0.50 cents and a final dividend of US1.00 cent, a 50% increase year-on-year. The company also remitted US$35.4 million in government taxes, up 76%.
Strategic investments supported the growth momentum. Capital expenditure of US$4.4 million was directed toward modernising plant and equipment, upgrading the spirit line, expanding blending capacity and growing the distribution fleet. A further US$8 million packaging line is scheduled for commissioning in the next financial year and is expected to unlock additional capacity and address bottlenecks in high-growth categories.
The operating environment remained broadly stable, supported by steady exchange rates and strong activity in agriculture and mining. Management remains focused on sustainable growth through product innovation, market development and operational efficiency. While geopolitical tensions in the Middle East continue to pressure fuel and input costs, mitigation measures are in place.
The Board thanked all stakeholders for their support. Mrs Nomusa Dube was appointed as a Non-Executive Director effective 1 October 2025, while Mr Robert H. M. Maunsell retired on 31 March 2026 after 23 years of service.
With strong brand equity, expanded capacity, and improved profitability, African Distillers enters FY2027 well-positioned to capture further growth in Zimbabwe’s formal beverage market.
