LONDON (Alliance News) - AIM-listed premium drinks company Distil PLC said on Thursday it swung to a profit on substantial revenue growth for the first half of its financial year on higher sales and volumes.
For the six months to the end of September 30, Distil reported a pretax profit of GBP101,000, swinging from a loss of GBP21,000, on revenue that rose by 42% to GBP1.2 million from GBP818,000 A year before.
Distil said its brands saw growth in year-on-year sales and volumes during the period, with sales revenue advancing 42% while combined case volumes grew 31%, with particularly strong performances in RedLeg Spiced Rum and Blackwoods Gin.
This followed a 57% increase in spending on marketing and promotions to GBP312,000 from GBP199,000 in the prior year.
Distil said that the upcoming Christmas trading period would be even more competitive than usual within the Spirits market as all categories fight to regain market share from gin.
"The strong growth momentum enjoyed in the previous financial year has continued into the six months to September 30, 2018, and I am pleased to report healthy year-on-year increases in revenue, profit and cash," said Executive Chairman Don Goulding.
"Investment in marketing support increased ahead of sales as we continued to build our brands. Additional funds were also used to develop gift packaging for RedLeg Spiced Rum and Blackwoods Gin, ready for launch ahead of the Christmas trading period, together with a range of miniature bottle formats," Goulding added.
Shares in Distil were up 16% at 2.55 pence on Thursday.
Distil (DIS)