 fell nearly 15 percent on Wednesday, despite turning a profit for the first time.){kind=link}
Premium drinks brand Distil (LON:DIS) fell nearly 15 percent on Wednesday, despite turning a profit for the first time.
Turnover, supported by increased marketing investment, increased by 40 percent in the year to the 31st March, with gross profits also up by 40 percent. Adjusted EBITDA improved from -£65,000 to £46,000 as the company achieved a maiden profit of £10,000.
Distil were boosted by an increase in consumer taste for spirits, with the overall spirits market in the UK growing ahead of beer and wine in both the on-trade and off-trade, driven by premium branded drinks. The company own brands including Blackwoods Gin and Vodka, RedLeg Spiced Rum, Blavod Black Vodka, Diva Vodka and Jago’s Vanilla Cream Liqueur.
Don Goulding, Executive Chairman of Distil, said:
“We are pleased to report a profit on our owned brands for the first time. This represents a major milestone in the long-term development of our business and a platform on which to grow and expand. Our performance reflects the energy and focused efforts of our small but dedicated team.
“This together with further increases in marketing investment and promotional activity, helped drive broader reach to a greater number of consumers in a fast-moving market.”
Looking forward, the company said:
“Consumer trends are moving at a more rapid pace providing great opportunities for those who stay close to the consumer and are then able to provide an agile response.
“We anticipate sustained growth of premium spirits and will therefore build on our proven marketing strategies to advance our brands. In addition, we are also exploring new products to build on the success of our existing brands.”
Despite the strong performance and maiden profit, shares in Distil fell nearly 15 percent at market open. Distil is currently trading down 10.14 percent at 3.10 (0850GMT).