The South African drinks company, Distell Group, has reported a 52% increase in trading income from R255.8m to R389.6m for the six months to December 2002. The company attributed the increase to improved
operational efficiencies, a more focused, better balanced portfolio and growth in its international operations.
Sales revenues for the six-month period were up 16% at R2.9 billion, with international sales rising by 31%. International operations now represent 22% of the group’s sales, against 18% in 2001.
The company said its liqueur brand, Amarula Cream, had been a key contributor to the growth in international sales, with the brand growing by 37% in the half-year. Amarula Cream sales in the US were “showing healthy growth”, while volumes in Canada were up by 83%.
However, the brand’s Latin American sales had come under pressure as a result of difficult trading conditions in the region.
International wine sales rose by 39% with volumes 32% higher. The Nederburg and Two Oceans brands were said to have performed particularly well, showing 37% and 72% growth respectively in sales outside Africa.
On the domestic market, volumes had also grown, the company said, with spirits rising by 4% and wines by 5.3%. However, flavoured alcoholic beverage sales had suffered from aggressive competition from multinationals.
Distell stated that volumes sold in Africa had increased by 14% and the company was committed to strengthening its presence in Tanzania, Zimbabwe, Kenya and Mauritius.
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By GlobalDataRegarding the outlook for the remaining six months, Nurek said the company was continuing its strategy to drive revenue growth by building brand equity augmented by improved product service and product supply. “Although slower growth is foreseen for the next six months, we are expecting satisfactory growth in trading income for the full year,” Nurek said.
