Revenue flowing freely at Distell’s rest-of-Africa business

Distell, one of Africa's largest alcoholic drinks unit, is navigating economic challenges in the region with a strategic focus on its growth opportunities across the continent. The company recently reported a 1.8% drop in full-year profit, with headline earnings per share down 1.7% to 656.4 cents compared to 688.2 cents a year ago. Despite uncertainties in Zimbabwe impacting investment plans, CEO Richard Rushton remains optimistic about the company's future in Africa. In a recent CNBC Africa interview, Rushton addressed concerns about the company's investments in Zimbabwe, emphasizing the long-standing relationship with AFTHIS in the country. He highlighted the challenges posed by liquidity and currency issues, stating that while they continue to support the business, ambitious investment plans are on hold. Rushton stressed the company's commitment to Africa as a key growth market and expressed confidence in the continent's potential for sustainable growth. Key Points: 1. African Expansion and Growth: Distell has seen impressive revenue growth of almost 40% on the continent, with significant contributions from East Africa. The company's investments in the region have led to a doubling of revenue and a tripling of profits in certain markets. With strong performance in Mozambique, Zimbabwe, Nigeria, and other African countries, Distell's African strategy remains robust amidst currency fluctuations and economic challenges. 2. Revenue Contribution and Future Outlook: Currently, Africa accounts for about 15.5% of Distell's total revenue. Rushton aims to double this contribution, setting a target for the company's African revenue growth. With a focus on sustainable expansion and strategic investments, Distell sees great potential for further growth and market penetration across the continent. 3. Resilient Performance in South Africa: Despite economic uncertainties in the region, Distell reported resilient performance in South Africa, with revenue accelerating in the second half of the year. The company achieved over 9% growth in South Africa, with stable volumes and share gains in the competitive market. Distell's diverse portfolio of brands and strong execution have positioned the company well to weather economic challenges and maintain market competitiveness. Overall, Distell's strategic focus on African growth markets and resilient performance in the face of economic challenges underscore the company's commitment to long-term sustainable growth. Despite temporary setbacks in Zimbabwe, Distell remains confident in its ability to capitalize on opportunities across the continent and drive continued success in the African market.