|
|
Related Topics |
About Distell (DST)
So who is Distell and what exactly do they do? The following was obtained from their website.
Who we areThe Distell Group is South Africa and Africa’s leading producer and marketer of wines, spirits, ciders and other ready-to-drink (RTD) beverages, sold across the world. With a diverse portfolio of brands with rich provenance and authenticity, our products are priced across the pricing continuum to cater to a broad spectrum of consumers. We employ approximately 5 500 people and have an annual turnover of R21,5 billion.
Our missionWe craft distinctive alcoholic beverage brands, enhance memorable moments and inspire responsible enjoyment. The value we create enriches the lives of our people, shareholders and the communities within which we live and work.
Our visionWe are a proud African alcoholic beverages company with heritage, global reach, world-class people and the ability to do extraordinary things!
Our purposeWe exist to provide unique moments of social enjoyment through the responsible marketing of well crafted ciders, wines and spirits.
Our valuesOur values define who we are as individuals and as a company. They guide how we conduct our business and engage with stakeholders.
Our Key Strengths
Our Aspirations
Who we areThe Distell Group is South Africa and Africa’s leading producer and marketer of wines, spirits, ciders and other ready-to-drink (RTD) beverages, sold across the world. With a diverse portfolio of brands with rich provenance and authenticity, our products are priced across the pricing continuum to cater to a broad spectrum of consumers. We employ approximately 5 500 people and have an annual turnover of R21,5 billion.
Our missionWe craft distinctive alcoholic beverage brands, enhance memorable moments and inspire responsible enjoyment. The value we create enriches the lives of our people, shareholders and the communities within which we live and work.
Our visionWe are a proud African alcoholic beverages company with heritage, global reach, world-class people and the ability to do extraordinary things!
Our purposeWe exist to provide unique moments of social enjoyment through the responsible marketing of well crafted ciders, wines and spirits.
Our valuesOur values define who we are as individuals and as a company. They guide how we conduct our business and engage with stakeholders.
- Customer and consumer focus – We are passionate about our customers and consumers.
- Courage – We are enterprising and courageous in the way we tackle challenges and opportunities.
- Responsibility – We take ownership of our words, actions and commitments.
- Respect – We respect people’s views, attitudes and opinions.
- Integrity – We act with integrity at all times.
- Collaboration – We are one Distell team!
Our Key Strengths
- Differentiated brand and product portfolio straddling all key occasions
- Brands with rich provenance and authenticity
- South Africa’s Winelands
- Wind-swept Scottish Isles
- Portfolio ideally suited to intermediate premiumisation in developing markets
- Strong balance sheet position
- Impressive agricultural asset base with potential to unlock value
- Organisational culture that thrives on innovation
- A diverse pool of talented professionals
Our Aspirations
- Dominant regional alcoholic beverage brand and RTM owner
- #1 cider company globally
- #2 alcoholic beverages company in South Africa
- Leading regional alcoholic beverages player in Africa
- Diversify geographic base and step-change growth
- One or two other continents
- Drive scale not possible through organic growth
One of South Africa's most popular Brandy's, Klipdrift
Distell owns a wide variety of drink brands which include but is not limited to the following:
- Hunters Dry
- Savanna
- Nederburg
- Drosty-Hof
- Paarl Perle
- Esprit
- Richelieu Brandy
- Klipdrift Brnady
- Three Ships Whiskey
- Scottish Leader Whiskey
- Amarula Cream
So about that trading update released by the company today. Below the trading update as published on SENS by Distell. SENS take off Sharenet's website.
Trading Update Start
During the first three months (1 July 2018 - 30 September 2018) of the new financial year ending 30 June 2019, Distell recorded flat Group revenue growth with single-digit volume decline compared to the corresponding period in the previous financial year.
In South Africa, tough trading conditions persist where consumer disposable income remains constrained due to the rising cost of living. Lower volumes were recorded compared to Q1 FY 2018 due to a price increase taken in October 2017. We have however seen a positive revenue effect across the portfolio due to further pricing decisions taken in Q1 FY 2019. This needs to be balanced appropriately with market share ambitions in the midst of a constrained consumer environment. Growth in the ready-to- drink (RTD) segment continues to take share from beer which we will continue to leverage and drive focused investment. Revenue trends from mainstream and premium wine continued in Q1 FY 2019 without the effects from the drought being experienced yet. Revenues from spirits remain stable and we will aim to capitalize further on trends in the segment and our strong position in brandy and single grain whiskey, whilst we build on our FY18 vodka performance. We continue to invest behind core brands and execution to deliver an increased customer footprint and market share gains. We anticipate a stronger Q2 FY 2019 given festive season demand and cyclical customer orders over this period.
In the rest of Africa we achieved excellent volume and revenue growth, led by Kenya, Botswana, Zambia, Mozambique and Zimbabwe. All three categories contributed to the growth, with a standout performance from the mainstream spirits category. Increased commodity pricing should allow commodity-producing countries to improve meaningfully, while investment-led growth will benefit many of the non-commodity-producing countries. We expect our Angolan operations to capitalize on an improved environment and see our Kenyan operations to continue on previous trends. We will continue to expand our local production and distribution footprint in Africa by further investments, alongside select joint-venture opportunities.
In the international markets, the UK, Taiwan and Nordic countries are showing higher volume and revenue growth, with the global trading environment remaining highly competitive and trade tensions at heightened levels. Scottish Leader and Drostdy-Hof was able to achieve good growth, recovering from the volume losses of the previous year. We will continue to invest behind select International markets whilst we refine our operating model and portfolio in these regions. The outlook for economic growth remains mixed with varying levels of political and economic risks in many of the markets in which Distell trades. The Group continues to defend and grow its domestic market share, integrate its new African route-to-market acquisitions while creating a more agile and efficient business which aim to enhance margins going forward. The abovementioned information does not constitute an earnings forecast and have not been reviewed and reported on by the Company’s external auditors.
Trading update end
Trading Update Start
During the first three months (1 July 2018 - 30 September 2018) of the new financial year ending 30 June 2019, Distell recorded flat Group revenue growth with single-digit volume decline compared to the corresponding period in the previous financial year.
In South Africa, tough trading conditions persist where consumer disposable income remains constrained due to the rising cost of living. Lower volumes were recorded compared to Q1 FY 2018 due to a price increase taken in October 2017. We have however seen a positive revenue effect across the portfolio due to further pricing decisions taken in Q1 FY 2019. This needs to be balanced appropriately with market share ambitions in the midst of a constrained consumer environment. Growth in the ready-to- drink (RTD) segment continues to take share from beer which we will continue to leverage and drive focused investment. Revenue trends from mainstream and premium wine continued in Q1 FY 2019 without the effects from the drought being experienced yet. Revenues from spirits remain stable and we will aim to capitalize further on trends in the segment and our strong position in brandy and single grain whiskey, whilst we build on our FY18 vodka performance. We continue to invest behind core brands and execution to deliver an increased customer footprint and market share gains. We anticipate a stronger Q2 FY 2019 given festive season demand and cyclical customer orders over this period.
In the rest of Africa we achieved excellent volume and revenue growth, led by Kenya, Botswana, Zambia, Mozambique and Zimbabwe. All three categories contributed to the growth, with a standout performance from the mainstream spirits category. Increased commodity pricing should allow commodity-producing countries to improve meaningfully, while investment-led growth will benefit many of the non-commodity-producing countries. We expect our Angolan operations to capitalize on an improved environment and see our Kenyan operations to continue on previous trends. We will continue to expand our local production and distribution footprint in Africa by further investments, alongside select joint-venture opportunities.
In the international markets, the UK, Taiwan and Nordic countries are showing higher volume and revenue growth, with the global trading environment remaining highly competitive and trade tensions at heightened levels. Scottish Leader and Drostdy-Hof was able to achieve good growth, recovering from the volume losses of the previous year. We will continue to invest behind select International markets whilst we refine our operating model and portfolio in these regions. The outlook for economic growth remains mixed with varying levels of political and economic risks in many of the markets in which Distell trades. The Group continues to defend and grow its domestic market share, integrate its new African route-to-market acquisitions while creating a more agile and efficient business which aim to enhance margins going forward. The abovementioned information does not constitute an earnings forecast and have not been reviewed and reported on by the Company’s external auditors.
Trading update end