Distell sees double-digit H1 profits increase

Distell sees double-digit H1 profits increase

Distell has said that strong sales and a weaker South African rand currency are set to yield a jump in profits for the first half of its fiscal year.

Earnings per share for the six months to the end of December are set to rise by between 20% and 25% versus the same period of the previous year, Distell said today (24 January). It warned that this remains merely a forecast at this stage.

The Savanna cider maker said that its projected jump in profits "is largely attributable to an improvement in operating profit, mainly as a result of increased sales volumes and the favourable impact of a weaker rand against all major currencies". Distell will release its half-year results next month.

In the first half of its previous year, Distell reported flat operating profits and net profits up by 1.2%, to ZAR630.6m (US$78.9m). Net sales rose by 3.6% to ZAR6.9bn.