DISTIL (DIS) Trading Update summary

Trading performance and market conditions

• Q4 revenues rose 34% to £498k, with volumes up 30% due to improved order phasing.

• Full-year revenues expected to fall 31% to £1.1m, with volumes down 32% amid tough market conditions.

• Rising inflation, increased UK alcohol duty, and upcoming packaging taxes are pressuring costs and consumer demand.

• On-trade faces higher employment and energy costs, with changing consumer habits impacting trading patterns.

• Market headwinds are expected to persist for at least three years, prompting a broad review of mitigation options.

Strategic initiatives and partnerships

• Three-year plan targets recovery and growth via UK distribution changes and targeted promotions.

• Export growth, especially in the USA and emerging markets, is a key focus.

• Partnership with Global Brands has expanded reach, leveraging a larger sales force and logistics network.

• Early success in the Global Brands partnership includes new account wins in the on-trade.

• Cost management efforts are underway to recalibrate the cost base and balance growth with cash needs.

Ardgowan distillery and brand development

• Ardgowan whisky distillery progressing, with first distillation set for April and grand opening in June 2025.

• Distil's £3m convertible loan investment secures a 9.09% stake and supports premium whisky and gin development.

• Blackwoods Gin production has started on site, with a brand home experience in development.

• The Blackwoods brand home is expected to provide a new revenue stream once open.

• Total investment in the Ardgowan site exceeds £28m.