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LISTED spirits maker, African Distillers (Afdis) has reported a 64,51 percent decline in full year profit to $1,1 million from $3,1 million previously.

This was on the back of reduced revenue and earnings for the year ended June 30, 2016.

Revenue for the period amounted to $22 million down 14 percent from $25 million in the prior comparable period.

Management attributed the volumes decline to the negative performance of the revenue side.

“The decline in the high contributing spirits had an overall negative effect on revenue performance

“This decline was further compounded by price reductions aimed at stimulating demand to maintain competitiveness” said the chairman, Mr Pearson Gowero in a statement accompanying the results.

Operating income was 32 percent below prior year due to the decline in revenue and mix which was in favour of lower value products.

Earnings per share decreased significantly from 2,75 cent to 0,97 cents due to re-organisation costs amounting to $0, 905 million and an impairment of $0,109 million resulting from gazetting of Springvale Estate, said Mr Gowero.

The spirits producer said its working capital improved during the period under review, which resulted in an injection of $2,6 million into operations. The company’s borrowings of $1,9 million were extinguished during the financial year that has just ended.

Going forward, management says it would focus on identifying revenue growth initiatives as well as strengthening the on-going cost-cutting measures.

The Afdis board has recommended a final dividend of 0,30 cents per share resulting in a total dividend of 0,45 cents per share for the year. — BH24