AIM-listed drinks firm Distil (LON:DIS) watched its share price climb by 12.73% to 1.24p (as of 13:30 BST) after reporting that revenues for the year ended June were up by 21%. Volumes were flat for the period.
Executive Chairman Don Goulding commented: “I am pleased to report a 21% increase in sales revenue year-on-year for the first quarter of our financial year.
“Volumes were flat year-on-year primarily due the loss of licensed sales of Blavod Black Vodka in Duty Free and Travel Retail throughout April to June following restrictions in international travel globally. However, this was offset by an increase in domestic retail sales both in store and on-line across our product range.
“Despite COVID-19 related challenges, including production plant closures during April, we continued to actively market and promote our brands throughout the lockdown period and successfully managed stock supply to all customers against a significant increase in demand for our products at the consumer level. RedLeg Spiced Rum and Blackwoods Gin brands performed strongly both in the UK and our key export markets.
“Whilst currently unable to provide full year guidance due to uncertainties surrounding the global pandemic, we are able to give a reasonable insight to the half year to 30 September 2020, as many of our export orders are now in hand and we are aware of major customer depletion forecasts to September. Naturally we remain cautious due to the risk of further lockdowns and all associated disruption.
“Our expectations for the six-month period April to September 2020 versus the same period prior year are for revenue to increase by between 75 – 85%, which will allow increased marketing investment (including new product development costs including an extension to our ready to serve range) to increase by 100 – 120%. Operating Profit is expected in the range of £50k to £70k”.