Distil PLC on Wednesday reported a sharp fall in quarterly revenue while export sales grew.

In its first quarter to June, the alcoholic spirits maker’s volumes fell 79% yearly and its revenue dropped 81% to £120,000 from £624,000. However, its export sales increased 84% compared to a year ago.

The figures reflect the London-based premium drinks retailer’s decision to handle all of its UK sales and marketing opportunities with retail customers, it explained, rather than through a third-party distributor.

‘The overall UK spirits market in the first half of this calendar year has been challenging as it continues to recover from the impact of Covid, showing a small decline in the off-trade as consumer drinking habits adjust to being back in hospitality which has grown off a low comparison during lockdown,’said Executive Chair Don Goulding.

He added that the firm expected less challenging times from next year as it sees a post-Covid recovery. ‘We expect the change to our business model to yield significant revenue upside from 2023 financial year onwards,’ Goulding added.

‘The UK is by far our largest market and stock cover held by our outgoing distributor to service major retailers is significant. This inventory is being managed down and removed from the distributor supply chain as we prepare for the shift to direct sales at the end of the second quarter,’ said Chair Goulding.

Distil shares fell 11% to 1.20 pence each in London on Wednesday morning.

Copyright 2022 Alliance News Limited. All Rights Reserved.