Distil drips lower as festive growth diluted

The AIM traded company, which owns premium drinks brands including RedLeg spiced rum, Blackwoods gin, Blavod black vodka and Diva vodka, said a 29% increase in revenues and volumes had been supported by a 53% increase in brand marketing investment over the three month period ended 31 December.

However, in October the company had released interim results that showed a higher 42.4% increase in revenue and 30.7% increase in volumes.

Don Goulding, executive chairman of Distil, said: "Our brands continued to perform well in Q3, growing volume and value across all trade channels in a highly competitive market. We increased marketing investment in promotional activity over the Christmas period to build stronger consumer awareness, trial and purchase of our key brands."

Over the nine months since the start of Distil's financial year sales have increased by 36% in revenue and 30% in volume, with marketing investment increasing 51%.

"Early reports from major customers indicate good year-on-year sales in the four weeks running up to Christmas, although consumers appeared to leave many purchases and celebrations until late in the month. The outlook for the final quarter to 31 March 2019 remains positive with full year out-turn expected to be in line with market expectations," said Goulding.

Distil's shares were down 5.10% at 2.33p at 0911 GMT on Monday.