Beverages giant, Delta Corporation, has gained a controlling stake in African Distillers Limited (Afdis) after acquiring additional shares during the past financial year.
Afdis chairman Pearson Gowero, indicated the move effectively makes the spirits and wines maker a subsidiary of Delta.
“Delta acquired additional shares during the year, effectively resulting in Afdis being a subsidiary,” he said in a statement accompanying Afdis financial results for the nine months to March 31, 2021.
In line with the Delta acquisition, Afdis’ financial year has changed from June 30 to March 31 to align with the group.
“Accordingly, the current financial statements have been prepared for the nine month period from July 2020 to March 2021 and care should be exercised when making a comparison to the prior 12 month period,” said Mr Gowero.
For the nine month period to March 31, 2021, volumes rose 34 percent despite the difficulties caused by Covid-19 pandemic.
Mr Gowero indicated the growth was driven by growth in spirits and ready to drink segments that went up by 50 percent and 22 percent respectively albeit a challenging economic environment.
“The macro-economic conditions were challenging due to the Covid-19 pandemic, but consumer spend remained resilient. There was relative stability on the foreign currency generated from trading and obtained from the auction system,” he said.
During the period, a new product, Gold Blend Number 9 was introduced to the market on the spirits category, which had a positive impact to the brown spirits.
Wines grew at a slower pace, at 2 percent due to reduced activity in the restaurant and hotel channel as a result of Covid-19 restrictions.
While the impact of the Covid-19 pandemic remain uncertain, Afdis will continue to focus on strategies to enhance revenue growth and opportunities, cost containment and improved production efficiencies.
Said Mr Gowero: “Plans are underway to invest in capital projects to localise production of some imported products.
“This will ensure improved business profitability and reduced foreign currency requirements.”