DISTIL (DIS) H2 2025 earnings summary

Executive summary

• Revenue declined 32% year-on-year due to challenging UK spirits market, cost inflation, and duty increases.

• Loss before tax increased to £1,101k from £942k in 2024, with gross margin falling to 38% from 48%.

• Strategic focus shifted to core brands and operational efficiency, pausing large-scale new product development.

• New UK distribution partnership with Global Brands Ltd expected to drive future growth.

• Equity fundraises in October 2024 (£650k) and September 2025 (£755k) strengthened liquidity.

Financial highlights

• Revenue: £1.04m (2024: £1.52m), down 32% year-on-year.

• Gross margin: 38% (2024: 48%), impacted by inventory write-down and raw material cost increases.

• Loss before tax: £1,101k (2024: £942k).

• Cash and cash equivalents at year-end: £338k (2024: £526k).

• Net assets: £5.68m (2024: £6.37m).

Outlook and guidance

• Cautious optimism for FY25/26 as consumer confidence is expected to recover.

• Expanded UK distribution network anticipated to boost volume and brand awareness.

• Continued focus on cost management and strategic review to position for growth.