DISTIL (DIS) Trading Update summary

Financial performance

• Q3 2024 revenues fell 59% year-on-year to £233k, following an exceptional prior-year quarter.

• Volumes declined 56% and gross margins dropped 6 percentage points to 42% due to fixed costs.

• Advertising and promotional spend was reduced by 55% in response to slower sales.

Market conditions and sales trends

• Spirits market in the UK remains challenging, with consumer spending under pressure and increased competition from own label and discounted products.

• Major customers reduced stock cover by 20%, leading to steadier but lower order flow.

• On-trade spirits sales also declined, with consumers shifting to perceived better-value drinks like beer and cider.

Strategic initiatives and partnerships

• Full UK distribution, including on-trade, will transition to Global Brands, a long-term partner with a larger sales force and strong national account relationships.

• Global Brands' portfolio and logistics capabilities are expected to create synergies and accelerate brand growth.