The alcohol industry has been through quite a roller coaster ride, since March this year. COVID-19 alcohol sales bans, led to job cuts, loss in taxes and a thriving black market. Releasing its full year results, South African-based global drinks company Distell reported a decrease of 64 per cent in earnings. Distell CEO, Richard Rushton CNBC Africa for more.
South Africa’s government has reinstated an alcohol ban in the country which saw alcoholic drinks maker Distell’s share price dropped by more than 6 per cent in Monday trading but has gained by 3 per cent in trade this morning. Joining CNBC Africa for more is Richard Rushton, CEO of Distell.
Industry body Vinpro said some 3 billion rand ($177.54 million) in sales had been lost in the first nine weeks of restrictions. Exports have resumed, but there is a backlog in the Cape Town port, it said.
Recently large South African and international companies have closed down shop in Zimbabwe due to the crippling economic crisis. Joining CNBC Africa to unpack why companies such as Pepkor, PPC, Nampak and Distell have given up on the Zimbabwean markets is Batanai Matsika, Head of Research at Morgan & Co.
One of Africa's largest alcoholic drinks unit, Distell, says is likely to hold off on further investments in Zimbabwe until signs of currency relief. Distell posted a 1.8 per cent drop in full-year profit, headline earnings per share are down 1.7 per cent to 656.4 cents compared with 688.2 cents a year ago. Joining CNBC Africa for more is Richard Rushton, CEO, Distell.
Remgro has released its interim results. The investment group which owns stakes in eMedia, FirstRand, MediClinic and Distell said diluted headline earnings per share fell over 3 per cent to 744 cents while dividends grew 5 per cent to 215 cents. CNBC Africa is joined by Neville Williams, CFO, Remgro.
Distell has managed to increase its headline earning per share by 12.1 per cent to 570 cents per share despite water restrictions and lower harvest production in South Africa. The maker of spirits and fine wines managed to reduce its debt to equity ratio from 32.5 per cent in 2017 to 19.3 per cent this year. Distell CEO, Richard Rushton joins CNBC Africa for more.
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