Distil shares soar 12% as group swings to profit

distil

Distil shares (LON: DIS) surged 12% on Thursday morning as the group swung to a profit in the six months ending 30 September 2020.

The owner of premium drinks brands including RedLeg Spiced Rum revealed a 128% increase in revenue from £824,000 to £1.9m.

Pre-tax profit during that period grew from a £1,000 loss to £154,000.

Distil saw exports surge to 165% and UK sales increase by 121%.

“Our team responded well to both demand volatility and supply chain challenges during the first six months of this pandemic. We focused on providing customer support, and increased marketing investment together with greater flexibility,” said Don Goulding, the executive chairman.

“This has allowed us to adapt rapidly to market changes, customer needs, and ensure continuity of product supply throughout. Increased headcount and investment in new product development enabled the launch of new lines with more to follow.

“Lockdowns and imposed restrictions, particularly on the hospitality sector and international travel, means we have seen a significant short term shift in product mix and source of business away from the On Trade and Travel Retail toward Grocery and online retail channels as consumers stayed home.

“While the nature and speed of market recovery is uncertain we will remain responsive, flexible and efficient to ensure we exit this year in a stronger position,” he added.

Distil said that they expect to emerge from 2020 in a stronger position, however amid the travel restrictions and other uncertainties, the group will not be providing market guidance for the full financial year until March 2021.

Distil shares (LON: DIS) are trading +10.21% at 1,38 (1014GMT).

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Safiya Bashir
Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.