HARARE, 20 July 2026 — African Distillers Limited delivered strong growth in the first quarter ended 30 June 2026, with volumes up 43% year-on-year on the back of a stable operating environment, improved product availability and reduced grey market activity.
In a trading update for the first quarter, the beverages manufacturer said the quarter was supported by steady exchange rates, contained inflation and a tight monetary policy framework. These conditions underpinned effective business planning and buoyant consumer spending, driven by ongoing activity in agriculture and mining.
“Regulatory enforcement, including stringent border controls and intensified operations against counterfeit and illicit alcoholic beverages, also contributed to the reduction in grey market activity,” the update noted.
All product categories recorded growth. Ready-to-Drink volumes increased by 48%, driven by sustained cider demand. Wine volumes surged 80%, supported by strong performance in the affordable segment led by 4th Street, Montello and Green Valley brands. Spirit volumes grew 32%, with brown spirits, particularly Star Brandy, leading demand, alongside improved availability across key brands and packs.
The Company attributed the performance to stable exchange rates, improved route-to-market execution and better product availability.
Revenue for the quarter rose 47% to US$27.9 million, reflecting strong volume performance, a favourable sales mix and continued demand in the formal trade.
Margins benefited from improved operating leverage and disciplined revenue management. However, this was partly offset by cost pressures stemming from higher fuel and packaging material costs, the impact of stronger regional currencies, particularly the South African Rand, on imported inputs, and the VAT adjustment implemented in January 2026.
“Management continues to focus on protecting margins through an appropriate sales mix, pricing discipline and rigorous cost control,” the statement said.
The Company remains optimistic for the remainder of the financial year, citing continued growth opportunities from stable exchange rates, sustained economic activity and ongoing regulatory action against smuggled and counterfeit products.
Management flagged that it will continue to monitor input cost pressures, currency movements and the impact of tax adjustments on margins.
Looking ahead, African Distillers said planned capacity enhancement, targeted brand-building investments and improvements in distribution effectiveness are expected to support further volume growth and profitability. As previously reported, significant capital investments are on schedule to meet rising market demand and secure long-term production capacity. These include the acquisition of an additional packaging line valued at US$8 million.
With capacity expansion projects progressing, African Distillers is well placed to capture further market share and support long-term growth in line with consumer demand and regulatory support for the formal market.
