17th Jan 2022 10:30
(Alliance News) - Distil PLC on Monday said its revenue for the year thus far was down by almost
30% year-on-year.
Distil's share price fell by 12% to 1.62 pence each in London on Monday morning.
The London-based premium drinks retailer said that revenue for the nine months from April to December were distorted by Covid lockdowns and consumer stockpiling. Revenue for the period was down 28% on the same period in 2020.
However, this was a 23% increase from the pre-pandemic revenue in 2019.
Revenue in the third quarter ending December 31 was down by 32% year-on-year. Distil said this was partly due to a reduction in "deep-cut" promotional activity in the UK, to strengthen its various brands' positions in the premium market.
However, hospitality sales multiplied in the financial third quarter, as did sales of pre-mixed cocktail cans. Export sales also increased by 16%, partly due to strong demand from Russia.
The company has now paid Ardgowan GBP2.9 million, from a GBP3 million loan minus GBP150,000 interest. It also reported progress in its planning for Blackwood Gin Distillery, and a formal launch of a new malt scotch product in the coming months.
"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," said Distil Executive Chair Don Goulding.
"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."
By Elizabeth Winter; [email protected]
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