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Distil has seen double digit revenue growth since April, boosted by an increase in domestic retail sales.
The premium drinks brands owner, including RedLeg Spiced Rum, Blackwoods Gin and Vodka and Blavod Black Vodka, reported revenues up 21% during the first quarter from April to June.
Volumes however were flat year on year due to the loss of licensed sales of Blavod Black Vodka in Duty Free and Travel Retail in the quarter, as international travel was restricted due to the coronavirus pandemic.
This was offset by higher retail sales, both in store and on-line across Distil’s entire product range, chairman Don Goulding said.
He added: “Despite COVID-19 related challenges, including production plant closures during April, we continued to actively market and promote our brands throughout the lockdown period and successfully managed stock supply to all customers against a significant increase in demand for our products at the consumer level.
“RedLeg Spiced Rum and Blackwoods Gin brands performed strongly both in the UK and our key export markets.”
Distil chose not to provide full guidance for the year, given the current uncertainty surrounding the coronavirus pandemic, but said it expected revenues to rise between 75% and 85% for the six months to September, allowing for increased marketing investment - including NPD - to increase by 100% to 120%.
Operating profits are expected in the range of £50k to £70k. For the first half last year, Distil reported operating profits of £1k, revenues of £824k and marketing costs of £219k.
“Naturally we remain cautious due to the risk of further lockdowns and all associated disruption,” Goulding added.
Furthermore, Distil announced the launch of a new ready to serve RedLeg Pineapple Rum & Franklin & Sons Ginger Ale can, available from August.
Kate O’Connell, Distil Marketing & Operations Director, commented: “The pre-mixed drinks category has been growing fast and we anticipate continued growth for the foreseeable future driven by increased demand for ‘low touch’ products.
“In addition to our current distribution we are delighted to confirm both ready to serve varieties have been listed nationally in a major retail group effective in store from mid-August”.
Morning update
The FTSE 100 started the day down 0.4% at 6,166.23pts.
Early risers saw McColl’s open up 7.4% at 41.90p, Pets at Home up 0.6% at 240.60p and Kerry Group up 0.4% at 108.70p.
Fallers included Naked Wines down 2.4% at 393p, Marston’s down 2.1% at 51.10p and Applegreen down 1.5% at 340p.
Yesterday in the City
The FTSE 100 closed down 1.5% to 6,189.90pts.
The majority of components closed in the red, including McColl’s down 5.3% at 39p, Marks & Spencer down 4.2% at 94.24p, WH Smith down 2.5% at 1,038 and Associated British Foods down 3.7% at 1,951p.
Among the few risers, Glanbia was up 2.6% at 942.89p and Premier Foods up 2.3% at 79.90p.
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