DISTIL (DIS) H1 2024 earnings summary

Executive summary

• Revenue grew 37% year-over-year to £632k for the six months ended 30 September 2023, with volumes up 48%.

• Loss before tax reduced by 43% to £314k compared to the same period last year.

• Brand activations, new product launches, and increased on-trade listings supported growth.

• The business continues to rebuild following a 2022 remodel, focusing on both UK and export markets.

Financial highlights

• Gross profit increased 35% to £283k, despite ongoing cost pressures.

• Administrative costs rose 12% to £489k, while marketing spend dropped 58% due to prior year one-off TV campaign.

• Cash reserves at period end were £321k, down from £948k a year earlier, reflecting losses and inventory build-up.

• EPS improved to a loss of 0.05p per share from 0.08p per share year-over-year.

Outlook and guidance

• Management expects continued growth in both UK and export markets, leveraging recent wins.

• Margin recovery anticipated in H2 due to price premiumisation and cost reduction efforts.

• New product launches and increased international marketing planned for the remainder of the year.

• The global alcohol market is projected to grow 2% annually through 2027, with UK rum category showing strong momentum.