Distell Group delivers 18.5% revenue growth in African markets

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Distell Group revenue grew by 9.3% to ZAR13.4 billion on 3.7% higher volumes.

Domestic market revenue increased by a commendable 8.2% and sales volumes rose by 2.9% amid a suppressed consumer environment and sustained competitor activity.

The Group’s spirits and ready-to-drink (RTD) portfolios delivered strong revenue and volume growth while the wine portfolio showed revenue growth of 4.5% due to premium wine benefiting from trading-up by consumers from mainstream brands. Exceptional brandy volume growth continues at 13.7% alongside growth of 21.3% from gin.

African Markets

African markets, outside South Africa, delivered revenue growth of 18,5% on sales volumes, which were up by 6.6%, largely driven by the inclusion of KWA Holdings E.A. Limited (KHEAL) in Kenya, which was acquired in April 2017.

A few countries delivered mixed results as the moderate uplift from higher commodity prices had not fully flowed through to the underlying economies, coupled with changes in our operating models.

Focus markets on the continent such as Namibia, Botswana, Kenya, Zambia and Zimbabwe all recorded strong growth. Overall performance was negatively impacted by challenging trading conditions in
Mozambique, Nigeria and a one-off negative impact from the Group’s Tanzania Distilleries Limited (TDL) associate as indicated below. The region contributed 55.6% to foreign revenue.

Volumes in international markets beyond Africa grew by 6.7%. Revenue increased by 9,4% as the increased local investment in the UK was impacted by the effects of a stronger rand and a less favourable sales mix. Travel Retail grew sales by 43,2%. The spirits portfolio delivered strong volume growth and cider and RTDs achieved double-digit volume and revenue growth. Brands from the wine portfolio grew market share in seventeen international markets, delivering higher overall
volumes of 4,9% compared to the prior period. The Taiwanese whisky market-share increased by 0,5% against an overall volume decline in the market.

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