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 is in "robust" health, according to is FD
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
Over the last 10 years RTD's as a category may not have grown at anywhere near the level it did between 1998 and 2003 but it has, nevertheless enjoyed steady global growth. This reality flies in the f...
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