Distil plc

("Distil" or the "Group")

Interim Results for the six months ended 30th September 2018

Distil (AIM: DIS), owner of premium drinks brands; RedLeg Spiced Rum, Blackwoods Gin and Vodka, Blavod Black Vodka, Jago's Cream Liqueur and Diva Vodka, today announces its unaudited interim results for the six months ended 30th September 2018.

Operational review:

  • • New listings achieved in France and Canada

  • • Increased investment in marketing support at point of sale

  • • Development of new gift packaging and miniature bottle formats

  • • Implementation of operational cost savings

Financial Review - versus same period last year:

  • • Revenue increased by 42.3% to £1.164m (2017: £0.818m)

  • • Gross profit increased by 54.7% to £710k (2017: £459k)

  • • Volume (litres) increased by 30.7%

  • • Investment in brand marketing and promotion increased by 56.8% to £312k (2017: £199k)

  • • Other administration costs increased by 9.7% to £293k (2017: £267k)

  • • Operating profit of £101k (2017: loss £21k)

  • • Cash reserves of £957k (2017: £690k)

Don Goulding Executive Chairman, commenting on these results said:

"The strong growth momentum enjoyed in the previous financial year has continued into the six months to 30 September 2018 and I am pleased to report healthy year-on-year increases in revenue, profit and cash.

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.

Operational improvements together with significant volume growth during the period have assisted gains in gross profit margin and contribution margin.

We have also ensured all planned measures to maximise benefits and offset possible risks relating to the UK exit from the EU have been finalised and fully implemented, well ahead of the anticipated date of March 2019."

Executive Chairman's Statement

Results versus same period last year

We delivered further year-on-year sales and volume growth across our brands during the period. Sales revenue advanced 42% whilst combined case volume grew 31% despite a decline of Blavod licensed sales in Eastern Europe. RedLeg Spiced Rum and Blackwoods Gin delivered particularly strong performances across the retail segment.

Gross Profit margin improved to 61% from last year's previous high of 56% whilst brand marketing investment increased by 57%, feeding through to an improved contribution margin of 34%, up from 32% in the same period last year.

Our strong brand performance, operational improvements and continued tight control of overheads enabled us to deliver a maiden first half profit during the period.

Operations

Having a strong consumer promotional programme in place, our main focus during the first half has been to work with our production and packaging partners to ensure efficient and cost effective supply to our customers and distributors especially during the unusually hot summer which resulted in higher than usual promotional demand spikes.

During this time, we maintained supply throughout and improved margins.

Outlook

The important Christmas trading period is always aggressively contested but likely to be particularly competitive this year within the Spirits market as all categories fight to regain market share from gin. In the growing gin category, we are likely to see the variety of new brands and flavours competing for distribution, trial and share.

Our promotional plans are in place supported by additional PR and social media campaigns, new cocktail recipes together with new premium gift packaging for Blackwoods Gin and RedLeg Spiced Rum, details of which will be shown on our websites in early November.

Distil plc - Half Year Results

Consolidated comprehensive interim income statement

Revenue Cost of sales Gross profit Administrative expenses: Advertising and promotional costs Other administrative expenses Share based payment expense Depreciation & amortization Total administrative expenses Operating profit/(loss)

Finance income Finance expense

Profit/(loss) before tax from continuing operations Income tax

Profit/ (loss) for the period

Profit/(loss) per share: From continuing operations

Six months ended 30 September 2018 Un-audited £'000

1,164 (454)

Six months ended 30 September 2017 Un-audited £'000

818

(359)

Year ended 31

March 2018 Audited £'000

2,014 (842)

710

(312) (293)

- (4)

459

(199) (267) (11) (3)

1,172

(465) (522) (22) (6)

(609)

(480)

(1,015)

101 - - 101 -

(21)

-

- (21)

-

157 - - 157 -

101

(21)

157

Basic (pence per share)

0.02

(0.01)

0.03

Diluted (pence per share)

0.02

(0.01)

0.03

Consolidated interim statement of financial position

ASSETS

Non-current assets Property, plant and equipment Intangible fixed assets

Total non-current assets

Current assets Inventories

Trade and other receivables Cash and cash equivalents

Total current assets Total assets

LIABILITIES Current liabilities

Trade and other payables

Total current liabilities Total liabilities

Net Assets

EQUITY

Equity attributable to equity holders of the parent Share capital

Share premium

Share based payment reserve Accumulated deficit

Total equity

As at 30

September 2018

Un-audited £'000

128 1,553

As at 30

September 2017

Un-audited £'000

61 1,542

As at 31

March 2018

Audited £'000

95 1,551

1,681

221 519 957

1,603

228 378 690

1,646

177 395 1,031

1,697

1,296

1,603

3,378

2,899

3,249

(263)

(99)

(235)

(263)

(99)

(235)

(263)

(99)

(235)

3,115

2,800

3,014

1,292 2,908 83 (1,168)

1,291 2,884 72 (1,447)

1,292 2,908 83 (1,269)

3,115

2,800

3,014

Consolidated interim cash flow statement

Cashflows from operating activities Profit/(loss) before tax

Adjustments for non-cash/no-operating items: Expenses settled by shares

Depreciation

Share based payment expense

Movements in working capital (Increase)/decrease in inventories Increase in accounts receivables Increase/(decrease) in trade payables Cash used in operations

Net cash (used in)/generated by operating activities

Cashflows from investing activities

Purchase of property plant & equipment

Expenditure relating to the acquisition and registration of licenses and trademarks

Net cash used in investing activities

Cashflows from financing activities Proceeds from issue of shares

Net cash generated by financing activities

Net (decrease)/increase in cash and cash equivalents Cash & cash equivalents at the beginning of the period

Cash & cash equivalents at the end of the period

Six months ended 30 September 2018 Un-audited £'000 101

-

4

-

Six months ended 30 September 2017 Un-audited £'000

(21)

-

3

11

Year ended 31 March 2018

Audited £'000 157

17

6

22

105

(44) (138)

42

(7)

(29) (49)

(128)

202

22 (66)

8

(140)

(206)

(36)

(35)

(37) (2)

(213)

- (7)

166

(37) (16)

(39)

-

(7)

-

(53)

8

-

(74) 1,031

-

(220)

910

8

121 910

957

690

1,031

Attachments

Disclaimer

Distil plc published this content on 25 October 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 25 October 2018 08:42:02 UTC