Why not buy my shares as you buy Hunters, Savanna, Gold Blend? You can buy a piece of me for 285 ZWL.
Welcome to On a Date with a listed company on the Zimbabwe Stock Exchange (ZSE)
THREAD: On a Date with African Distillers Limited (AFDS)
#1. History,
1944, A company is established in Bulawayo using the name relatable to a former vice president of South Africa during the rein of Paul Kruger, P J Joubert Limited.
1946, P J Joubert Limited changes name to African Distillers (AFDS).
The initial business of AFDS was the sale and distribution of imported spirits, liqueurs and wines.
HOWEVER the purchase of a distillery in Mutare during the year brought the start of manufacturing of a range of spirits locally.
1951, listed on the @ZSE_ZW
1974, AFDS moves its headquarters to Stapleford which houses its production, warehousing and distribution facilities
2022, Distell a key supplier and shareholder of AFDS gets lured by Heineken for USD 2.24 billion.
#2. Operations,
AFDS
is a manufacturer, distributor and marketer of branded WINES, CIDERS & SPIRITS mainly licenced from @distellgroup in Zimbabwe
Apart from its headquarters it has 6 depots in Bulawayo, Harare, Kwekwe, Masvingo, Mutare and Victoria Falls.
#3. Competitors,
WGA Liquor
Known for Breakers Pure Cane Spirit, Special Dudley's Dry Gin & Black Bull XO Brandy
Nyangani Industries
Lower end market producer of spirits, Sixer, Challenger, Kitoko, Bouncer & Rivella
Mambo Beverage, producer of Ranger
Jeksa
A licenced beverage alcohol importer and distributor of wine and spirits in Zimbabwe. Associated with Friends Club Whiskey, Golden Touch,
Edward Snell & Co
A South African based producer and distributor of international brands in Zimbabwe
#4. Challenges,
The influx of illegal and smuggled alcoholic drinks which undercut its revenue as customers shift their money to the cheaper products
Access to cheaper foreign currency is limited in Zimbabwe. AFDS relies on it to import from its SA supplier.
Purchase of Distell by @Heineken which is a strong competitor to @abinbev the parent of Delta Corporation.
HOWEVER this could be mitigated by the Competition and Tariff Commission which approves such deals to ensure fair play in the marketplace.
#5. Share price,
285.00 ZWL per share as at Feb 17, 2023
263.40 ZWL per share on the 3rd of January 2023
35th on ranking in terms of year to date performance on the ZSE
27th most traded stock over the past 3 months to 17 Feb 2023
118,389,792 issued shares
#6. Shareholding,
Afdis Holdings (AH) an investment vehicle owned by DLTA and Distell of SA controls 70.45%.
DLTA holds 41.22% and Distell controls 29.23% of 70.45%.
AFDS is a subsidiary of Delta Corporation (DLTA) which controls a total stake of 50.44%.
#7. Management,
Stanley Muchenje - Managing Director, (1 April 2021)
Holds a Business Studies degree from UZ and a M. Phil Marketing from IMM
Exposed to senior management programs including the acclaimed Accelerated Leadership Development Programme at GIBS.
A distinguished marketer who proved his abilities at Delta Corporation and formerly SABMiller now part of its former rival Anheuser Busch InBev.
Championing the localisation of production away from importation. Commissioned a cider plant for its Hunters brand
#8. Pitch,
Investing in capital projects to localise production of some imported products. Recently completed the construction of a cider fermentation plant earmarked for Hunters Dry and Gold.
Key supplier is a major shareholder who supports the business.
Well positioned brands that appeal to the tastes of the younger consumer and cheaper smaller packaged alcohol beverages.
Ability to leverage on the parent company Delta Corporation's resources such as depots, dealer network to access a wide market.
Did you know that from your phone whilst buying your favorite AFDS product you can buy its shares.
Download the @CTRADEmobile or @ZSE_ZW app and start investing on your usual companies.
Whilst on it take note of the invitation to join aspiring investors
Each week will be on a Date with a company listed on the ZSE.
The purpose of this thread is to have a minimum appreciation of listed firms.
Disclaimer: Do not misconstrue this thread as investment advise DATE companies before you buy its shares
Martin Mataga
@MartinMataga
Democratizing investing knowledge by sharing simplified stories of people, enterprises and organizations delivering value in the marketplace. Growing with you!