6 April 2022

DISTIL PLC

Trading Update

Distil plc (AIM: DIS), owner of premium drinks brands RedLeg Spiced Rum, Blackwoods Gin and Vodka, Blavod Black Vodka, TRØVE Botanical Spirit and Diva Vodka, is pleased to provide an update on trading for the financial quarter ended 31 March 2022.

Unaudited Q4 (January - March 2022) volumes and revenues showed strong year-on-year growth:

·      Volumes increased 38%

·      Revenues increased 32%

·      Investment in brand marketing and new product development increased 156%

Don Goulding, Executive Chairman of Distil, said: 

"I am pleased to report strong sales during Q4.  The source of business in terms of territories and trade channels continues to expand as markets reopen following Covid lockdowns. This has resulted in export revenue growth of 70% versus the same period last year, with domestic sales advancing 29%. Sales continue to track ahead of pre-pandemic levels.

RedLeg Spiced Rum remains the main driver of growth with sales increasing 37%, while Blackwoods Gin grew ahead of the market with volumes up 5%. Blavod Black Vodka licenced volumes increased 260% as Duty-Free outlets reopen, albeit gradually.

Additional marketing funds were invested in launching new Blackwoods 2021 Vintage, which included a branding refresh and new liquid development across the range. The brand is now produced and bottled in Scotland, and will be in distribution from April onwards.

Funds were also invested in additional promotional activity across RedLeg Spiced Rum to support a retail sales price increase as we premiumise the brand.

At 31 March 2022 cash balances (unaudited) were £1.56 million following the previously reported advance to Ardgowan under the loan agreement.

As the war in Ukraine continues, I can confirm that we do not source, directly or indirectly, any packaging, ingredients or production from either Ukraine or Russia.

We previously exported our brands to these markets and whilst they were in growth it was off a low base, and they accounted for relatively small volumes. Their closure has had no material impact on our results or plans.

Our team has been raising funds for the Red Cross Ukraine Crisis Appeal, and we have pledged to match those funds.

Development of the Blackwoods distillery at Ardgowan near Glasgow continues in line with plans. Distillation equipment has been commissioned for manufacture in Scotland with delivery expected in the summer, and gin production due to commence shortly after. 

The outlook for the year is positive, subject to markets continuing to remain open post-Covid. Price inflation will play a key role in determining consumer disposable income and the cost of goods. Distil brands are well positioned as great tasting, affordable premium products that can be enjoyed equally in- or out-of-home. We are therefore focused on driving efficiencies throughout the supply chain, and gaining maximum return on brand investment in order to protect this position."

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About Distil

Distil Plc is quoted on the AIM market of the London Stock Exchange. It owns drinks brands in a number of sectors of the alcoholic drinks market. These include premium spiced rum, vodka, gin, vodka vanilla cream liqueur and are called RedLeg Spiced Rum, Blackwoods Vintage Gin, Blackwoods Vodka, TRØVE Botanical Vodka, Blavod Original Black Vodka, Diva Vodka and Jago's Vanilla Cream Liqueur.