REG - Distil PLC - Trading Update

DistilAnnouncement

17/01/2022 07:05

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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 £4.1million (unaudited).

Update on Ardgowan Distillery investment

We are pleased to confirm that the initial advance of £2.85 million (£3
million less one year's retained interest of £0.15 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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