Distil PLC Trading Update (5541Y)
17 January 2022 - 6:00PM
UK Regulatory
TIDMDIS
RNS Number : 5541Y
Distil PLC
17 January 2022
17 January 2022
Distil Plc
Trading update
Distil plc (AIM: DIS), owner of premium drinks brands RedLeg
Spiced Rum, Blackwoods Gin and Vodka, TRØVE Botanical Vodka and
Blavod Black Vodka, provides an update on trading for the third
quarter of its current financial year ending 31 March 2022.
The longer-term trend for the Company remains positive, however
cumulative (unaudited) revenues for the nine months (April to
December 2021) were lapping figures distorted by the initial Covid
related lockdowns and consumer stockpiling. Because of its
exceptional nature, year on year figures were down 28% versus the
same period the previous year, although they were up 23% versus the
prior year 'pre-Covid'.
Similarly, unaudited year-on-year third quarter (October to
December 2021) revenues decreased by 32%, but in that period we
also reduced support for deep-cut promotional activity in the UK in
favour of a longer-term beneficial move to more premium positioning
for our key brands. The Board sees the moves made to reinforce the
premium positioning of the Group's brands as important for inherent
brand and shareholder value.
As at 31 December 2021, cash balances amounted to GBP4.1million
(unaudited).
Update on Ardgowan Distillery investment
We are pleased to confirm that the initial advance of GBP2.85
million (GBP3 million less one year's retained interest of GBP0.15
million) has now been made to Ardgowan under the terms of our loan
agreement. Planning for the Blackwoods gin distillery is underway
and making good progress in line with our planned timetable. We
have also progressed our new Malt Scotch and anticipate formally
launching the product in the coming months, opening new market
opportunities for the Group and its brand portfolio.
Don Goulding, Executive Chairman of Distil, said:
"Q3 results reflected a significant reduction in domestic market
promotional discounting and comparison to an extraordinary year
last year due to Covid related lockdowns and unusually high levels
of promotion.
Whilst difficult in the short term to move through an average UK
retail selling price increase, the long-term benefits ease pressure
on cost increases being faced and allow us to build our marketing
spend away from discounting towards stronger revenue growth.
I am pleased to report that consumer sales in the UK hospitality
sector and export markets began to show signs of recovery in the
quarter year-on-year. In addition, we saw good growth in our
Ready-To Serve (RTS) product offering:
-- In the hospitality sector, despite continued uncertainty and
staff shortages in outlet, sales increased 542% versus the same
period last year and increased 19% versus the same period pre
Covid.
-- Sales of our Ready-To-Serve pre-mixed cocktails cans
increased 150% in the quarter year-on-year, with nine month
cumulative sales up by 46%.
-- Export sales increased by 16% benefiting in part from strong sales in Russia.
Outlook for the full year remains difficult to forecast
accurately due to the varying levels of restrictions across the UK
and in our key export markets together with mixed economic
forecasts although we are anticipating Q4 growth as we lap strong
but not extraordinary comparisons.
We remain excited about the Ardgowan investment and will keep
investors informed at each milestone in its development."
For further Information:
Distil plc
Don Goulding Executive Chairman Tel: +44 203 283 4007
Shan Claydon, Finance Director
----------------------
SPARK Advisory Partners Limited
(NOMAD)
----------------------
Neil Baldwin Tel +44 203 368 3550
Mark Brady
----------------------
Turner Pope Investments (TPI)
Limited (Broker)
----------------------
Andy Thacker / James Pope Tel +44 20 3657 0050
----------------------
About Distil
Distil Plc is quoted on the AIM market of the London Stock
Exchange. It owns drinks brands in a number of sectors in the
alcoholic drinks market. These include premium spiced rum, vodka,
gin, lower ABV spirit drinks and are called RedLeg Spiced Rum,
Blackwoods Vintage Gin, Blackwoods Vodka, Blavod Original Black
Vodka, TRØVE and Diva Vodka.
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END
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