15th Oct 2020 12:06
(Alliance News) - Distil PLC on Thursday said it swung to profit in the first half of its financial year despite lockdown affecting trade.
The owner of premium drinks brands swung to a pretax profit in the half year ended September 30 of GBP154,000 from a loss of GBP1,000 a year prior. Revenue was up over 100% to GBP1.9 million from GBP824,000 a year before.
The company said spirits performed well as consumers shifted to making their favourite cocktails at home during lockdown. Rum and gin categories posted good performance as well, it added.
Trade suffered from full closure during the spring and a slow reopening with subsequent curfews, while travel retail has been hit hard with sales moving to grocery and online retail.
The company said: "A key development is our decision to make a three-fold increase in new product development investment, including employing additional talent to assist build our capability. We have already seen the benefits of this move with the introduction of RedLeg Banana Rum, announced in September, revamped packaging for the entire RedLeg range, and a new ready-to-drink product, with more innovation planned to be brought to market in coming months in preparation for the market return."
Going forward, the company said market recovery is uncertain but the company will remain "responsive, flexible and efficient" as to finish the year in a strong position.
Distil shares were up 12% at 1.40 pence each in London on Wednesday midday.
By Greg Roxburgh; [email protected]
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