Savanna-owner Distell reports revenue growth, but cautions on inflation and load shedding | Business

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Distell on Thursday delivered double-digit interim revenue growth across its divisions, despite a high inflationary environment and supply chain disruptions. | News24_Business

But the JSE-listed liquor group, which reported half-year results to end-December 2022, struck a cautionary note about future prospects as it braced itself for a possible global recession while dealing with mounting costs and rampant load shedding at home.

Distell CEO Richard Rushton, who was due to retire in March, has had to extend his employment contract with the Heineken transaction still pending. Domestically, revenue rose 13.6% with volume growth up 9.7%, while in African markets, outside of South Africa, revenue increased by 21.5% on 6.8% higher sales volume. Revenue in international markets outside of Africa increased by 25.6% alongside volume growth of 39.2%, driven by the company's branded Scotch whisky portfolio and sales of bulk spirits. Dividend payments remain suspended because of the Heineken transaction.

The company also said the direct cost of load shedding in the reporting period came to R12.5 million and was expected to"nearly quadruple should the current stage of load shedding in South Africa continue".

 

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