Distil's revenue rises as it plots US expansion

AIM-listed Distil’s half year revenue rose as the drinks owner invested in marketing and recruitment, while it plans to expand in the US.

Distil, which owns RedLeg Spiced Rum, Blackwoods gin and vodka, Blavod black vodka and Jago's cream liqueur, reported that its revenue increased 25.7% for the six months ended 30 September to £666,000 compared to the same period last year.

This resulted in profit rising 22.5% to £376,000, while volume by litres climbed 16.4%

Investment in brand marketing and promotion rose by 9.8% to £146,000 and other administration costs was up by 12.2% to £266,000 due to an increase in recruitment to support investment growth.

The operating loss narrowed by 25.8% to £66,000.

Distil has grown the number of stockists across all trade channels. During the first half of the year, two retailers have listed RedLeg Spiced Rum and one retailer has listed Blackwoods Gin in stores throughout the UK and online.

The company said it secured “a good level of support activity” for the third quarter and expects to remain on plan for the year.

In October, it finalised label approval by the US Alcohol and Tobacco Tax and Trade Bureau for RedLeg with production and shipments planned for the fourth quarter.

The fourth quarter will also see the new Rum Shack and Blackwoods Gin Palace drinks making its first appearance at festivals and events throughout the UK.

Executive chairman Don Goulding said: "Continued growth in demand for RedLeg Spiced Rum, Blackwoods Vintage Gin and Blackwoods Vodka more than offset lower shipment figures for Blavod which had benefitted from pipeline fill as we reopened the US market in 2015.

He also said the company’s decision in 2014 to move all export sales to sterling invoicing, which together with a focus on locally sourced raw materials, softened the negative impact of the currency devaluation since the Brexit vote.

Shares in Distil were down 3.7% to 1.30p at 1001 BST.