A fresh profit warning from spirits company Distil has wiped out 63.6% of the embattled company’s market valuation in a day.
Final-quarter revenues will be “significantly below” forecast, the company warned investors, plunging Distil into an even deeper loss than anticipated.
The RedLeg, Blackwoods and Blavod distiller is now exploring options to fill an “immediate short-term funding need”.
Distil’s profit warning followed a Q3 update in late January, when the company revealed its three-month revenues to December had fallen 26% to just £173k.
Shares in Distil fell to just 0.04p in the wake of the announcement, having held steady around 0.12p since a previous crash in September 2025; the shares are now worth just 1.3% of the value they held in April 2021.
Blaming the “continued economic downturn” and inflationary pressures, Distil added the spirits category had been “hit hard” as a poor market was exacerbated by ever-climbing alcohol duties and oversupply issues.
To further Distil’s woes, power supply issues have put production behind schedule at its Ardgowan Distillery – and funding arrangements mean the distillery company is unable to draw down further debt until production is back on track.
The company also said its launch of its Blavod black vodka into the US had been delayed by regulatory issues.
In a last-ditch effort to “soften the decline”, Distil has agreed to boost point-of-sale promotions with its major grocery customers throughout the first quarter of the new financial year.
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