Distil exploring funding options, downgrades FY outlook

Distil downgraded its full-year outlook on Wednesday as it reported a slump in revenues and said it was "exploring funding options".

The AIM-listed premium drinks firm said revenues fell 55% in the four months from April to July to £204,000.

Executive chairman Don Goulding, said: "The business had anticipated lower sales in the first four months of the year due to phasing trends, however the results achieved sit below expectations. In light of this, we have revised our expectations for the full year which, despite the disappointing performance year to date, still anticipate revenue growth versus 2023."

He said the global alcohol market has faced "persistent challenges" in recent years, with global drinks industry data service, IWSR, recording a decline in global beverage alcohol volumes in 2023 for the first time in 30 years, and difficulties continuing into 2024.

"The decline has been driven by an extraordinarily challenging economic environment, as consumers are faced with ongoing inflationary pressures which are putting a strain on spending," Goulding said.

"While this is an issue affecting all global markets, for 2024, this has been exacerbated in the UK by the poor weather, leading to further curbs on socialising both in and out of home.

"The effects of these changes to consumer spending have been felt throughout the drinks industry, across all arms and at all levels, including our business."

Goulding said first-quarter and July trading was much softer than expected and has required the business to pivot in order to drive volumes across its brands through increased consumer facing activity.

"This has included an increase in promotional activity to drive awareness and trial, as well as to secure key on-trade listings, the benefits of which we expect to begin to see once the market shows signs of recovery," he said.

Goulding said this has created an immediate short-term funding need and the board is currently exploring options to address this need.

Distil owns drinks brands RedLeg Spiced Rum, Blackwoods Gin and Vodka, TRØVE Botanical Vodka and Blavod Black Vodka.

At 1000 BST, the shares were down 46% at 0.23p.