Distil (AIM: DIS), owner of premium drinks brands including Blackwoods Gin and Vodka, RedLeg Spiced Rum, Blavod Black Vodka, Diva Vodka and Jago’s Vanilla Cream Liqueur, announces its final results for the year ended 31 March 2020.
· RedLeg Pineapple Rum successfully launched and performing strongly
· Ready-to-drink (“RTD”) RedLeg Spiced Rum and Franklins 1886 Cola launched and listed in major UK national retailer
· Mardi Gras trademark secured in Europe and USA
· Implementation of improvements to the structure and capability of New Product Development
· UK blending and bottling successfully relocated
· New markets opened in Czech Republic, Canada, Africa, Middle East and Russia
· Operational measures taken to protect our business and employees as a result of COVID-19, including remote working, advancement of production and retention of an additional bottling plant to ensure continuity of supply
· Turnover increased 2% to £2,441k from £2,401k
· Gross profit increased 1% from £1,429k to £1,446k
· Margins broadly flat at 59.2% for the same period, year-on-year (2019: 59.5%)
· Advertising and promotion spend decreased 3% from £688k to £665k
· Other administrative expenses increased by 3%
· Operating profit increased 15% from £160k to £184k
· Net cash outflow of £210k (2019: £37k inflow) resulting in year-end cash reserves of £858k (2019: £1.07m)
· Net assets of £3.43m (2019: £3.17m) at 31 March 2020
Don Goulding, Executive Chairman of Distil, said:
“ Our core brands and new products performed well in a highly competitive market. Our operating profit grew year on year and we remain in a strong cash position, debt free.
I am particularly pleased with the rum products we launched this year as they gained traction with consumers in the UK and our key international markets. Based on this success, we further strengthened our new product development capability to benefit from the opportunities that will naturally flow from new market conditions.
In response to the Covid-19 related lockdown in all of our markets, we remained agile and adapted well to market challenges and closures. The excellent performance of our team ensured continuity of supply throughout the period.”