Distell CEO on expansion plans, results & fimin Mboweni’s budget

South African alcoholic drinks maker, Distell, reported a 4.8% decrease in half-year profits amid lower sales volumes. The company attributed this decline to challenging economic conditions affecting consumer purchasing power, with headline earnings per share falling by 5% to 548.6 cents. Distell Group CEO, Richard Rushton, discussed the company's expansion plans and the impact of Finance Minister Tito Mboweni's budget on the business during a recent interview on CNBC Africa. As part of Distell's growth strategy in Africa, Rushton revealed plans to capitalize on the high-growth opportunities in Mozambique, highlighting the country as a key market for the company. Despite facing tough economic conditions, Distell has continued to invest significantly in the continent, with investments totaling around 500 million to 1 billion rand over the past few years. The company's focus on the African market has paid off, with double-digit revenue growth reported from the continent in the latest financial results. When discussing the recent budget announcement, Rushton commended Minister Mboweni for showing restraint in tax increases on excise duties, despite a slight increase of 4.4%. He acknowledged the importance of maintaining a balance between taxes and consumer affordability, particularly for products like wine and brandy. While some customers may not have been pleased with the tax adjustments, Rushton emphasized the positive impact of the minister's measures on the overall business environment. In response to the minister's plans to lower the corporate tax rate, Rushton expressed optimism about the potential stimulus for further investment and job creation in South Africa. He believed that reducing the corporate tax rate would incentivize businesses to expand and contribute to economic growth in the country. Distell's CEO welcomed the government's efforts to instill confidence in the economy and create a conducive environment for businesses to thrive. The company remains committed to its growth trajectory in Africa and aims to capitalize on emerging opportunities while navigating the challenges posed by the current economic landscape.