New Statesman - Distell H1 revenues up 9.3 per cent

Distell, a South African wine and spirits company, has reported revenues of ZAR6.63bn for the six month period ending December 31, 2009, an increase of 9.3 per cent compared to revenues of ZAR6.07bn in the same period of the previous year.

Operating profit for the period was ZAR949.18m, an increase of 1.9 per cent compared to ZAR931.91m for the previous year quarter.

The increase of 1.9 per cent in operating profit resulted mainly from continued revenue growth. Benefits derived from improved throughput and greater efficiencies were largely offset by the impact of the stronger rand on the revenue line and a less profitable sales mix.

Domestic sales volumes increased by 5.8 and revenue by 10.2 per cent. Cider and RTD (ready-to-drink) brands continued their strong performance while the spirits portfolio remained under pressure, with volumes declining. Distell's wine portfolio also showed a marginal volume decline.

International sales volumes, including Africa, increased by 13.8 per cent. Spirit volumes showed encouraging growth, and wines more modest growth. Ciders and RTDs continued their upward trajectory, although off a smaller base. However, a stronger rand against all major currencies limited international revenue growth to 12 per cent.

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