S AFRICA: Distell H1 profits boosted by exports

• First-half net profits up by 12.4% to ZAR875.6m (US$99.2m)
• H1 net sales up by 9.3% to ZAR8.7bn
• Operating profits rise by 5.3% to ZAR1.2bn 
• Volume share of export wine market increases to 27% 

Distell boosted its profits in the second half of its current fiscal year, due to an increase in export volumes helped by a weak rand and a strong performance in sub-Saharan Africa.

Net profits in the six months to the end of December rose by 12.4% to ZAR875.6m (US$99.2m), the spirits, wine, cider and RTD producer reported today (25 February). Sales in the period were up by 9.3% to ZAR8.7bn, as operating profits increased by 5.3% to ZAR1.2bn.

Overall volume sales increased by 6.6%, the company said. Sales in its domestic market of South Africa were up by 9.9% by value, as volumes rose by 6.7%, despite a “challenging environment” partly due to duty hikes. 

Export volumes benefited from a weak rand, increasing by 6.5%, with liquer brand Amarula performing well in key markets, Distell said. In wine, the group improved its volume share of the export market to 27%. In sub-Saharan Africa, excluding South Africa, there was “strong growth”, accounting for 64.4% of international sales, the company said.

Looking ahead, Distell's FD, Merwe Botha, said: "We are in robust financial health. At the same time, our portfolio of well-respected brands is sufficiently versatile in terms of product and pricing to give us the scope to capitalise on prevailing opportunities."

For the company's full announcement, click here