Firm sees growth despite sales drop

DISTELL yesterday reported a 2.4 percent revenue growth to R12.5 billion against a backdrop of continued subdued growth and an intensified competitive landscape for the six months to December. The growth was achieved despite a decline in sales volumes of 3.1 percent. The managing director, Richard Rushton, said: “Our wine portfolio again delivered both strong revenue and volume growth, while our spirits portfolio showed good overall volume growth. The cider and ready-to-drink portfolio reflected an improved sales mix while total volumes were lower.” Headline earnings rose 1.1percent to R1.2bn and headline earnings a share gained 1 percent to 536.8c a share while total assets added 2.9 percent to R20.5bn. Rushton said a stronger rand, particularly against the pound, had a negative impact on the results, and saw foreign currency conversion losses amounting to R89.4 million, resulting in operating costs rising by 3.1 percent. The group declared an interim dividend of 165c a share. Distell shares were 2.1 percent higher yesterday at R146. – Sandile Mchunu

GLENCORE