Wines and spirits maker African Distillers (Afdis) is accelerating a major capacity
expansion programme, including an US$8 million packaging line, as strong
consumer demand continues to drive growth across its product portfolio.
The Zimbabwe Stock Exchange-listed group said it invested US$4.4 million in capital expenditure during the year ended
March 31, 2026 to modernise its production facilities, improve efficiency and
expand manufacturing capacity.
The investments came as the company posted a strong
financial performance, with revenue rising 56% to US$93.2 million and operating
income more than doubling to US$12.2 million.
Afdis chairman Matlhogonolo Valela said the latest
investments were aimed at supporting future growth while removing production
bottlenecks.
“Capital expenditure of US$4.4 million was incurred
during the year, directed towards modernising plant and equipment, improving
reliability and enhancing operational efficiency. These investments
strengthened the operating platform and supported improved throughput and cost
efficiency,” he said in the company’s annual report, which was published
this week.
The company is now preparing to commission a new packaging
line during the current financial year.
“As previously communicated, the business is advancing
the acquisition of a new packaging line valued at US$8 million, scheduled for
commissioning in the ensuing financial year. This strategic investment will
unlock additional capacity, improve production flexibility and address existing
bottlenecks, particularly in high-growth categories,” Valela said.
The expansion programme also included upgrades to the
spirits production line, increased blending capacity and an enlarged
distribution fleet.
According to the company, the investments complemented
strong consumer demand that lifted sales volumes by 50% during the year.
Ready-to-drink beverages remained the largest growth driver
after volumes increased 62%, while wine sales rose 57% and spirits grew 34%.
Valela attributed the performance to stronger economic
activity and improved trading conditions.
“The business delivered a strong performance,
benefiting from firm consumer demand and improved product availability. The
company acknowledges and values the actions being taken by authorities and
regulatory bodies against illicit trade,” he said.
He added that exchange rate stability, record agricultural
output and increased mining activity had created a more favourable operating
environment.
Looking ahead, Afdis expects the expanded production
capacity to support continued growth through product innovation and market
development.
“Management remains focused on sustainable growth and
profitability through product innovation, capacity enhancement and market
development, supported by continued economic activity in agriculture, mining,
diaspora remittances and infrastructure investment,” Valela said.
However, he cautioned that geopolitical tensions in the
Middle East continued to disrupt global markets, putting pressure on fuel
prices and production input costs, although management was implementing
measures to mitigate the impact.