Distil PLC on Tuesday said its outlook was more positive as it reported a widened interim loss amid a particularly soft first quarter.
The London-based owner of premium alcoholic drinks brands such as RedLeg Spiced Rum, Blackwoods Gin and Gem Diva said pretax loss widened to £555,000 in the six months to September 30 from £314,000 a year ago.
Revenue fell 38% to £393,000 from £632,000. Total administrative costs increased 16% to £780,000 from £674,000.
Cost of sales reduced 33% to £235,000 from £349,000.
The company noted a particularly weak first quarter, which impacted sales into key customers and distributors.
‘Shifting consumer habits in response to inflation meant that stock levels had not been depleted at the usual rate, reducing the level of orders throughout Q4 of the prior financial period and Q1 of the current financial year. This was combined with general category trends downwards to create poor numbers of sales out, although the impact at a consumer level was not as severe,’ Distil said.
It added: ‘Throughout the half year we have readjusted our plans and the key focus through to the end of the year will be on increased promotional support through the key Christmas period, as well as supporting rate of sale in existing and newly-won on-trade customers.’
Looking ahead, the company noted: ‘The market is showing early signs of improved consumer confidence with the full-year outlook more positive, but we remain cautious, and cash management will be a focus area for the business, ensuring to prioritise higher return on investment spend.’
Distil shares rose 2.6% to 0.20 pence per share on Tuesday afternoon in London.
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