UK spirits producer Distil says it is cautiously optimistic about consumer confidence for the rest of the year.
In a statement accompanying its half-year results today (5 November), executive chairman Don Goulding said: “The market is showing early signs of improved consumer confidence with the full-year outlook more positive, but we remain cautious”.
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In the six months ended 30 September, the Blackwoods Gin maker booked £393,000 ($510,662) in revenue, a 37.8% drop on the year prior. Gross profits were also down 44% to £158,000.
The group also booked an 11% increase in administrative costs, at £541,000.
For the remainder of the year, Goulding said the company would be would be focused on “cash management” and “ensuring to prioritise higher ROI spend”.
He added that “the key focus through to the end of the year will be on increased promotional support through the key Christmas period, as well as supporting rate of sale in existing and newly-won on-trade customers”.
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By GlobalDataDespite “a slow start to the year”, the company said it was “encouraged by the uplift in Q2”. The group saw revenues dip 8% on 2023 in the second quarter, though “this is in line with overall market trends”, said Goulding.
Volumes increased minimally in the quarter by 0.3%. In August and September they were up 5% year on year. Distil did not disclose volume figures in its half year report.
In its outlook, the company said it has put in place “a strong programme of promotional activity through to the new year, to generate further sales uplifts”.
The second half of its financial year will also see Distil launch a new limited edition RedLeg SKU and a new brand home for Blackwoods Gin, which it also expects to “generate a new revenue stream for the business”.
In August, the RedLeg Spiced Rum maker made a call for “immediate short-term funding” after seeing revenues plummet more than 50% between April and July this year.
The London-listed group revealed that it had achieved revenues of £204,000 in the four-month period, compared to £453,000 the previous year, a dip of 55%.
In September, the group completed a £650,000 raise, which it planned to use to support its Christmas season promotions and manufacturing.
The company said the capital would help to produce and advertise ‘limited edition’ stock for the season.
The sum was also to go towards developing brand range extensions and to secure “major account listings” for the on and off trade, Distil said at the time.
