REG - Distil PLC - Trading Update

DistilAnnouncement

06/04/2022 07:01

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220406:nRSF3617Ha&default-theme=true

RNS Number : 3617H  Distil PLC  06 April 2022

6 April 2022

 

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 for the financial quarter
ended 31 March 2022.

Unaudited Q4 (January - March 2022) volumes and revenues showed strong
year-on-year growth:

·      Volumes increased 38%

·      Revenues increased 32%

·      Investment in brand marketing and new product development
increased 156%

Don Goulding, Executive Chairman of Distil, said:

 

"I am pleased to report strong sales during Q4.  The source of business in
terms of territories and trade channels continues to expand as markets reopen
following Covid lockdowns. This has resulted in export revenue growth of 70%
versus the same period last year, with domestic sales advancing 29%. Sales
continue to track ahead of pre-pandemic levels.

 

RedLeg Spiced Rum remains the main driver of growth with sales increasing 37%,
while Blackwoods Gin grew ahead of the market with volumes up 5%. Blavod Black
Vodka licenced volumes increased 260% as Duty-Free outlets reopen, albeit
gradually.

 

Additional marketing funds were invested in launching new Blackwoods 2021
Vintage, which included a branding refresh and new liquid development across
the range. The brand is now produced and bottled in Scotland, and will be in
distribution from April onwards.

 

Funds were also invested in additional promotional activity across RedLeg
Spiced Rum to support a retail sales price increase as we premiumise the
brand.

 

At 31 March 2022 cash balances (unaudited) were £1.56 million following the
previously reported advance to Ardgowan under the loan agreement.

 

As the war in Ukraine continues, I can confirm that we do not source, directly
or indirectly, any packaging, ingredients or production from either Ukraine or
Russia.

 

We previously exported our brands to these markets and whilst they were in
growth it was off a low base, and they accounted for relatively small volumes.
Their closure has had no material impact on our results or plans.

 

Our team has been raising funds for the Red Cross Ukraine Crisis Appeal, and
we have pledged to match those funds.

 

Development of the Blackwoods distillery at Ardgowan near Glasgow continues in
line with plans. Distillation equipment has been commissioned for manufacture
in Scotland with delivery expected in the summer, and gin production due to
commence shortly after.

 

The outlook for the year is positive, subject to markets continuing to remain
open post-Covid. Price inflation will play a key role in determining consumer
disposable income and the cost of goods. Distil brands are well positioned as
great tasting, affordable premium products that can be enjoyed equally in- or
out-of-home. We are therefore focused on driving efficiencies throughout the
supply chain, and gaining maximum return on brand investment in order to
protect this position."

 

 

For further information:

 

 Distil PLC
 Don Goulding, Executive Chairman            Tel +44 20 3283 4006

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 Vodka, Blavod Original Black Vodka, Diva Vodka and Jago's Vanilla
Cream Liqueur.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTFLFSVSSIEIIF