“Domestic revenue increased by 5.2 per cent and sales volumes by 2.6 per cent in a challenging economic environment which continued to curtail consumer demand. Distell’s cider and ready-to-drink (RTD) brands reflected good growth albeit at a slower pace than in previous years,” the company said.
“The spirits portfolio showed a volume decline, primarily as a result of the depressed performance of South Africa’s brandy category. Sales volumes of the wine portfolio reflected modest growth.”
However, the leading spirits, fine wines, ciders and RTD’s producer and marketer saw improvement in its international sales volumes.
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“International sales volumes, including Africa, rose by 4.5 per cent while revenue improved 34.2 per cent, benefiting from a weaker rand and the inclusion of the Burn Stewart Distillers Limited (BSD) brand portfolio for a full year,” [DATA DST:Distell] said.
“The cider and RTD and spirits portfolios delivered volume growth while the wine category showed a marginal volume increase. Sub-Saharan African markets, outside South Africa, continued to deliver strong results with volume growth across all categories.”
According to Distell, group revenue grew 12.8 per cent to 17.7 billion rand in the 2014 year from 15.7 billion rand in 2013.
Operating profit increased by 22.9 per cent from 1.7 billion rand in 2013 to 2.1 billion rand in 2014 and profit before taxation increased to two billion rand from 1.5 billion rand.
Headline earnings rose 40.4 per cent to 1.5 billion rand in 2014 from one billion rand in 2013 while headline basis earnings per ordinary share increased to 721.3 cents from 531.7 cents.
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“Global economic activity has broadly strengthened, but conditions are expected to remain volatile. The balance of risks has improved, but remains on the downside. In the domestic economy high unemployment and moderate growth in disposable income continue to curtail consumer spending,” said Distell.
“The strength, appeal and diversity of Distell’s portfolio of brands, as well as our broad geographic footprint across a range of economies and regions, provide us with opportunities to further unlock real stakeholder value.”