Distil's earnings to be ahead of expectations after Christmas sales surge

Distil, the owner of drinks brands RedLeg spiced rum, Blackwoods gin and Jago’s cream liqueur, said earnings for last year are likely to be ahead of expectations due to a surge in sales over Christmas.

Revenues for the third quarter ended 31 December 2016 jumped 71% year-on-year, while volumes climbed 56% and investment in marketing increased 88%.

Sales grew across bars, pubs, retail and online on the back of stronger marketing, greater promotional activity and wider distribution.

Export sales were aided by a weaker pound as international distributors took advantage of the price benefits, but licensed sales of Blavod black vodka to the Eastern Europe was suppressed, although they have “little impact” on the company’s overall profits.

The AIM-listed company said that premium gin remained “buoyant in most markets” and that Blackwoods gin is experiencing “good growth”.

Chief executive Don Goulding, said: "The premium spirits market outlook remains positive although highly competitive especially in the gin category. We are well positioned to continue our brand building progress.”

He added that the company’s focus over the coming months will be to open up new markets for RedLeg and prepare for the launch in the US.

Shares in Distil were up 18.26% to 1.36p at 1016 GMT.