Wines and spirits maker African Distillers Limited (Afdis) posted an impressive set of financial results for the year ended 31 March 2026, with profit after tax surging 51 percent to US$7,7 million, driven by strong product demand, reduced pressure from illicit imports and improved market stability.
The group reported revenue growth of 56 percent to US$93,2 million, while operating income more than doubled to US$12,2 million.
Afdis chairman Mthokozisi Valela said the performance reflected stronger consumer demand across all product categories and improving operating conditions.
“The business delivered a strong performance, benefiting from firm consumer demand and improved product availability,” he said in a statement accompanying the group’s audited financial results.
Afdis recorded a 50 percent increase in overall volumes during the year, driven largely by strong growth in RTD beverages, which rose 62 percent. Wine volumes increased 57 percent, while spirits grew 34 percent.
The improvement was attributed to tighter enforcement measures against smuggling and informal trade.
“The company acknowledges and values the actions being taken by authorities and regulatory bodies against illicit trade,” Valela said.
The strong financial performance comes as Zimbabwe’s formal beverages sector continues to recover from years of pressure linked to exchange rate instability, inflation and competition from grey market imports.
Afdis said the broader operating environment had remained “broadly stable” during the year under review, supported by tight monetary policy, improved foreign currency inflows from agriculture and mining, and contained inflation.
The company also intensified capital investment during the period, spending US$4,4 million on plant modernisation and operational upgrades aimed at improving efficiency and reliability.
In addition, Afdis confirmed it is proceeding with the acquisition of a new US$8 million packaging line expected to be commissioned in the next financial year.
“This strategic investment will unlock additional capacity, improve production flexibility and address existing bottlenecks, particularly in high-growth categories,” the company said.
The group declared a final dividend of US$0,01 per share, bringing the total dividend for the year to US$0,015 per share after including the interim dividend already paid.
Despite the strong results, the company remains entangled in a tax dispute with the Zimbabwe Revenue Authority (Zimra) relating to the currency used to settle certain tax obligations between 2019 and 2022.
Zimra issued assessments amounting to US$1,84 million, arguing the taxes should have been paid entirely in foreign currency. Afdis said it had already paid US$1,82 million under the “pay now, argue later” principle while continuing to challenge aspects of the assessments through legal and tax channels.
Management warned that the matter “could have a material impact on the company’s operations”, if resolved in line with the current assessments.