(Alliance News) - Alcoholic drinks maker Distil PLC on Thursday swung to a loss in the first half with the company citing tough conditions in the UK unflavoured gin market.
The stock was trading 19% lower at 0.68 pence each in London on Thursday morning.
The company, which owns the RedLeg rum brand, Blackwood's gin and Blavod vodka, swung to a first half pretax loss of GBP1,000 in the six months to September 30. Last year, it made a GBP101,000 pretax profit.
Revenue fell by 29% year-on-year to GBP824,000 from GBP1.2 million.
Executive Chair Don Goulding said: "We experienced trading challenges in our core markets, particularly the UK unflavoured gin market where we had fewer promotions and retail distribution declined by approximately one hundred outlets, during the six months to September 30. By contrast the spiced rum market continued to enjoy good year-on-year growth during the period.
"Whilst we expect further growth in the spiced rum market we anticipate further softening of the unflavoured gin category into the foreseeable future. Despite these headwinds we remain confident in our strategy of investment in marketing support to our brands, coupled with new product innovation, to deliver growth over the medium term."
During the period, the company launched RedLeg Caramelised Pineapple Spiced Rum product, which Distil said is now being sold in major UK retailers.
For the full-year Distil expects revenue to lag behind market forecasts, though the company expects operating profit to be in line due to cost control measures.
By Eric Cunha; ericcunha@alliancenews.com
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Distil (DIS)