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Distell FY sales soar by 20.8%
By Nicola CarruthersSouth African drinks firm Distell saw revenue rise by 20.8% for fiscal 2022, led by its single malt portfolio and Amarula liqueur.
The company’s revenue for the year ending 30 June 2022 reached R34.1 billion rand (US$2bn), up from R28.3bn rand (US$1.68bn). Operating profit jumped by 22.8% to R2.4bn (US$142.4 million).
Revenue from the firm’s spirits arm increased by 27.6%, with ciders and RTDs growing by 26.4%, and wine up by 14.6%.
The company’s malt whisky portfolio soared by 32%, led by Scotch brands Bunnahabhain and Deanston.
Distell also recorded ‘outstanding growth’ for Amarula, up by 17.2% in revenue.
The liqueur brand reported an ‘exceptional performance’ led by the Americas, where it nearly doubled revenue. The company also sold one million litres of Amarula in both Brazil and Germany.
Amarula returned to the million-case ranks after growing by 28.9% to 1.2m cases in 2021, according to Brand Champions 2022 data.
Revenue in the firm’s home market of South Africa climbed by 24.4%, with volume up by 18.7%. The firm noted it had 47 more trading days compared to the previous 12-month period, due to a number of alcohol bans in the country.
In African markets, outside South Africa, revenue increased by 14.4%, with 16.3% higher sales volumes.
Revenue in international markets outside Africa rose by 7.9%, with volume growth up by 9.4%, primarily driven by single malts and Amarula.
Distell said the global growth was despite one of its largest revenue-contributing regions, Taiwan, experiencing on-trade closures due to Covid-19 during the trading period.
In South Africa, Distell said the economy was boosted by the removal of Covid-19 lockdown restrictions. But it noted that the risk of ‘sustained severe loadshedding’, record-high fuel prices, increased inflation and rising living costs could affect growth forecasts in the medium term.
The group said it would continue to ‘improve efficiencies’ and manage costs to offset rising costs related to inflation.
The firm is ‘working closely’ with its suppliers to address supply shortages and expects a gradual improvement in supply in the next 12 to 18 months.
In addition, Distell said it had low levels of debt, which could provide the firm with resources to capture future ‘growth opportunities’.
Due to certain conditions stemming from Heineken’s planned purchase of a majority stake in Distell, the board has decided not to declare a final dividend for the 12 months ending 30 June 2022.
The sale will exclude Distell’s Scotch whisky brands.