The company’s revenue growth was also positively influenced by the weaker rand.
Despite a challenging economic environment, the company reported a 12.9 per cent increase in domestic revenue as well as a 6 per cent increase in sales volumes.
“Sales volumes of the wine portfolio reflected strong growth. Distell’s cider and RTD (ready-to-drink) brands reflected satisfactory growth albeit at a slower pace than in previous years. The spirits portfolio showed a marginal volume increase,” said [DATA DST:Distell] .
The company’s brand sales in international markets grew 9.3 per cent on a volume decline of 1 per cent.
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“The Group’s international business also benefited from a weaker rand. The spirits portfolio delivered volume and revenue growth of 6.3 per cent and 12.3 per cent respectively. The wine category achieved revenue growth of 6.2 per cent while volumes contracted by 2.4 per cent,” said the company.
On the other hand, operating expenses increased by 11.1 per cent on the back of increased investments made in key strategic initiatives.
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Distell headline earnings were reported at 987.4 million rand and headline earnings per share were 455.7 cents. The companies operating profit was at 1.5 billion rand.
Looking ahead the company expects that the global environment will remain a challenge due to diverging growth and monetary policy expectations in developed economies. This alongside a restraint in the growth of emerging markets will toughen the trading environment.