TIDMDIS
RNS Number : 0229W
Distil PLC
13 April 2023
DISTIL PLC
Trading Update
Distil plc (AIM: DIS), owner of premium drinks brands RedLeg
Spiced Rum, Blackwoods Gin and Vodka, Blavod Black Vodka, TRØVE
Botanical Spirit and Diva Vodka, is pleased to provide an update on
trading following the end of its financial year on 31 March
2023.
Unaudited year-on-year Q4 (January - March 2023) highlights:
-- Volumes decreased 40%
-- Revenues decreased 37%
-- Investment into advertising and promotions decreased 66%
-- Cash reserves of GBP515k at 31 March
Don Goulding, Executive Chairman of Distil, said:
"Although fourth quarter results are down year-on-year, the
quarter has delivered the strongest trading performance during the
financial year. Unaudited full year revenue sits slightly below
market expectations at GBP1.32M (FY2022: GBP2.94M (audited)),
whilst unaudited full year loss before tax is higher at GBP0.71M
(FY2022: GBP95K (audited)).
Quarterly performance was suppressed due to reduced promotional
activity in UK major grocery as a result of the transition away
from distributor management. The quarter also saw us lapping
particularly strong export sales last year, as we opened
significant new markets and saw the benefit of associated pipe-fill
sales.
Despite this, the outlook for the coming financial year is
positive. Q4 delivered the strongest revenues of the financial
year, indicating that we are successfully rebuilding following the
business remodel in the first half of the year. It has been a
transitional year for the business - there was a bigger job to be
done than anticipated due to larger volumes of stock available in
the trade than reported, however we are now through the issues that
this has caused in previous quarters, and trading well with direct
customers. We are confident that we will continue to build on this
success and begin to see the benefits of the remodel from Q1
FY23/24.
Driving growth through export has remained a focus this quarter,
and we're pleased to have opened new markets in Europe, with
interest from markets further afield being nurtured across the
portfolio. Expanding and strengthening our global brand footprint
will play a pivotal role for the business going forward into
FY23/24, both in terms of revenues and margin.
Management of operations and cost of goods also remains a
priority across our brands as we're faced with double-digit price
increases from suppliers in reaction to inflation. The team is
working hard to mitigate these increases and reduce our costs
moving forward.
Alongside building programmes to strengthen our existing brands,
the quarter has seen us lay the groundwork on which to create
innovative new-to-world products in response to consumer trends,
including a blended malt whisky in accordance with our partnership
with Ardgowan, which has a H2 target launch. The team will be
working diligently over the coming months to bring the new brands
to market, and we look forward to sharing more detail with
shareholders in due course.
Progress remains positive at the Ardgowan site, with internal
renovation works to the gin building complete, and the still due
for installation in May. The team is working closely with Ardgowan
to design the visitor experience, with plans to invite trade later
this year once works have progressed further across the wider
site.
This year has been challenging due to the short-term effect of
the business remodel, taking control of the major retailers
internally, and moving our UK on-trade business to Marussia
Beverages. This decision was carefully considered by the Board, and
we remain confident that the decision will yield significant
revenue upside from the next financial year onwards.
We are entering the new financial year in a good cash position,
with reserves of GBP515K. We will continue to focus on driving
revenue and reinvesting profits into building our brands and have a
strong promotional plan in place with UK grocers, as well as an
additional programme of multi-channel marketing activity in the UK
and key export markets to accelerate sales.
The business is well positioned to build and grow value for
customers, shareholders, and other stakeholders in the next
financial year and beyond. Market guidance for FY23/24 will be
issued at the time of our final results announcement in June."
For further information:
Distil PLC
Don Goulding, Executive Chairman Tel +44 (0)203 405 0475
Shaun Claydon, Finance Director
------------------------
SPARK Advisory Partners Limited
(NOMAD)
------------------------
Neil Baldwin Tel +44 20 3368 3550
Mark Brady
------------------------
Turner Pope Investments (TPI)
Ltd (Broker)
------------------------
Andy Thacker Tel +44 20 3657 0050
James Pope
------------------------
About Distil
Distil Plc is quoted on the AIM market of the London Stock
Exchange. It owns drinks brands in a number of sectors of the
alcoholic drinks market. These include premium spiced rum, vodka,
gin, vodka vanilla cream liqueur and are called RedLeg Spiced Rum.
Blackwoods Vintage Gin, Blackwoods Vodka, TRØVE Botanical Vodkas,
Blavod Original Black Vodka and Diva Vodka.
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END
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