Distell sees growth despite sales drop

Published Feb 24, 2017

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Durban - Distell on Thursday reported revenue growth of 2.4 percent to R12.5 billion.This is against a backdrop of continued subdued growth and an intensified competitive landscape for the six months to December. 

Growth was achieved despite a decline in sales volumes of 3.1 percent.

MD Richard Rushton said: “Our wine portfolio again delivered both strong revenue and volume growth, while our spirits portfolio showed good overall volume growth.

"The cider and ready-to-drink portfolio reflected an improved sales mix while total volumes were lower.”

Headline earnings rose 1.1 percent to R1.2 billion and headline earnings a share gained 1 percent to 536.8c a share, while total assets added 2.9 percent to R20.5 billion.

Read also:  PIC becomes shareholder in Distell

Rushton said a stronger rand, particularly against the pound, had a negative impact on the results, and saw foreign currency conversion losses amounting to R89.4 million, resulting in operating costs rising by 3.1 percent.

The group declared an interim dividend of 165c a share.

Distell shares were 2.1 percent higher at R146. 

BUSINESS REPORT

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