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Distell’s Richard Rushton on Covid-19 regulations & the impact of illicit alcohol sales
Alcoholic drinks maker Distell reported that its full year headline earnings may drop between 60 and 80 per cent due to the Covid-19 impact on its business. Due to South Africa’s strict lock-down regulations, there has been a ban on the sale of alcoholic beverages since March. The Covid-19 financial strain on the business has hampered the businesses plans to expand across Africa but instead focus on the immediate crisis by the Covid-19 pandemic. Joining CNBC Africa for more is Distell Group CEO, Richard Rushton.
Fri, 15 May 2020 10:45:43 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Stricter lockdown regulations in South Africa have led to a ban on alcohol sales, causing a significant decline in Distell Group's earnings.
- Illicit alcohol sales have further exacerbated the financial strain on Distell, highlighting the need for regulatory authorities to address this issue.
- Distell Group remains resilient and is implementing strategies to navigate the challenges posed by the pandemic, expressing optimism for recovery post-crisis.
Distell Group, a leading alcoholic drinks maker, has been hit hard by the financial strain caused by the Covid-19 pandemic. The company recently reported that its full-year headline earnings may drop by as much as 60 to 80 percent due to the impact of the global health crisis on its business operations. One of the major factors contributing to this decline is the strict lockdown regulations imposed by the South African government, which have led to a ban on the sale of alcoholic beverages since March. This ban has significantly affected Distell's revenue streams and thwarted the company's plans for expansion across Africa. Distell Group CEO, Richard Rushton, recently discussed the challenges faced by the company in an interview on CNBC Africa. Rushton highlighted the detrimental effects of illicit alcohol sales on the legal market and emphasized the need for regulatory authorities to address this issue promptly. Despite the current financial setbacks, Distell remains committed to weathering the storm caused by the Covid-19 pandemic and emerging stronger on the other side. The company is implementing strategies to navigate the crisis and is optimistic about its ability to recover once the restrictions are lifted.
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