REG - Distil PLC - Trading Update

DistilAnnouncement

06/07/2023 07:00

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RNS Number : 1184F  Distil PLC  06 July 2023

Distil PLC

 

Trading update

 

Driving Brand Engagement

 

Distil plc (AIM:DIS), owner of premium drinks brands RedLeg Spiced Rum,
Blackwoods Gin and Vodka, TRØVE Botanical Vodka, Blavod Black Vodka and Diva
Vodka, provides an update on trading for the first quarter of its current
financial year.

 

Unaudited year-on-year first quarter (April - June 2023) results:

 

·    Revenues increased 206% from £119k to £364k year-on-year

·    Marketing investment decreased -72% year-on-year

o  Investment last year included costs associated with RedLeg TV commercial

 

Don Goulding, Executive Chairman, said:

 

"Reported Q1 revenues show extraordinary growth as we are lapping a suppressed
Q1 in 2022 as a result of remodelling the business. However, the growth is
encouraging as it reflects that we are on our way to rebuild from a stronger
base despite a challenging economic environment which has suppressed the
consumer spirits market.

 

The business remodel has given the team greater control of our marketing
investment, and this quarter has seen us activate RedLeg Spiced Rum directly
with consumers at two key UK consumer events, The Great Escape Festival in
Brighton (80,000 attendees), and Taste of London in Regents Park (55,000
attendees).

 

The Great Escape Festival signalled RedLeg's return to the city that launched
the brand. The activation gave us a platform from which to increase on-trade
distribution, brand awareness, and target consumer trial across the city.
Taste of London saw the full RedLeg range of flavours sampled by target
consumers across the five-day event, driving revenue for the business.
Consumer-facing events and engagement represent a key pillar for the business
across our brands, and this will continue to be a focus throughout the year.

 

This quarter also saw the successful launch of the RedLeg e-commerce site
(https://www.redlegrum.com/shop) which allows us to sell directly to consumers
online, delivering a new revenue stream for the business. Over the coming
quarter, the team will continue to test and develop a robust marketing
programme and online-exclusive range of products and branded merchandise to
grow this channel. Learnings will be implemented across the rest of the
portfolio, delivering additional volume at attractive margins.

 

At Ardgowan, this quarter saw the team reach a major milestone with the
delivery of the gin still. The still will be fitted and commissioned over the
coming months and we look forward to distilling the first Blackwoods liquid at
its new home in the near future.

 

We're pleased that this quarter has begun to see the recovery from one-off
impacts of the business remodel in 2022. The market remains uncertain in the
economic climate, particularly in the UK due to the planned duty increases
effective from 1 August, however we are working closely with our customers to
ensure that our products are well positioned and marketed to minimise the
effects on the business. Overall, the team is excited by the opportunities
that the remodel has provided, and we look forward to driving business growth
and value for shareholders throughout the rest of the year."

 

 

 

 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/James Pope                     Tel: +44 20 3657 0050

 

This announcement contains inside information as stipulated under the UK
version of the Market Abuse Regulation No 596/2014 which is part of English
Law by virtue of the European (Withdrawal) Act 2018, as amended. On
publication of this announcement via a regulatory information service this
information is considered to be in the public domain

 

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, Blavod
Original Black Vodka, TRØVE Botanical Spirit and Diva Vodka.

 

 

 

 

 

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