S AFRICA: Distell FY profits regain ground
- Full-year net profits lift by 2% to ZAR960m (US$136m)
- Net sales up by 4.4% to ZAR12.3bn
- Operating profits increase by 3%
- South Africa and emerging markets help to offset weak sales in Europe
Distell sees full-year sales, profits rise
Distell has reported rises in both sales and profits for its latest fiscal year, but the drinks firm expects weak consumer demand in Europe to continue for the next 12 months.
Distell's net profits rose by 2% to ZAR960m (US$136m) for the 12 months to the end of June, a spokesperson for the Savanna cider producer told just-drinks today (30 August). Profits were boosted by a 4.4% increase in net sales on the previous year, to ZAR12.3bn.
Emerging markets across Latin America, Africa and Asia, as well as domestic sales, helped the South Africa-based drinks group to offset lower consumer demand in Western Europe. Net sales in South Africa rose by 7% for the year.
"We have been buffered from the severity of trading conditions to some extent by our diversity of portfolio and pricing, as well as the wide range of markets in which we trade," said Distell's MD, Jan Scannell. Operating profits rose by 3% for the year.
That said, the company does not expect significant improvement in Europe, where many national economies remain weak. "We believe challenging trading conditions, especially in developed countries, will continue in the year ahead, with unemployment and limited disposable income still adversely impacting consumer spending," said Scannell. "We anticipate that future growth will continue to be led by emerging markets.”
Distell said that its best performers in its last fiscal year were Amarula and Hunter's, as well as sparkling wine brand JC le Roux and the Paarl Perlé and Autumn Harvest Crackling wine brands. Bisquit Cognac also grew strongly in South Africa, as did the whiskies Scottish Leader, Harrier and Three Ships.
For the company's announcement, click here.
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