Distil PLC on Thursday said third quarter revenue dropped due to ‘one-off issues’ that it believes will not continue into next year.
Distil shares were down 33% trading at 0.60 pence per share on Thursday afternoon in London.
The London-based premium drinks producer, whose brands include RedLeg Spiced Rum and Blackwoods Gin and Vodka, said revenue was £411,000, plummeting 48% from £789,000 in the same period last year.
The company said the revenue drop was down to a one-off reduction in stock market cover linked to the removal of its UK distributor, as well as a one-off reduction in stock availability over the Christmas period within a major retailer.
Distil said full-year revenue is expected to be ‘significantly below market expectations,’ with an estimated loss before interest, taxes, depreciation and amortisation of about £600,000.
The company noted that RedLeg Spiced Rum delivered a strong performance across other major retailers, although Blackwoods was negatively affected by its delisting by a medium-sized retailer.
Distil said its UK distributor Marussia Beverages UK Ltd is ‘making positive progress increasing distribution,’ while new export markets have also opened in Scandinavia and Latin America.
Chair Don Goulding said: ‘The business faced several challenges in Q3 leading to disappointing year-on-year performance versus the previous year. These are one-off issues affecting this financial year and will not continue into FY23.
‘To mitigate the effects of the issues faced on the full year results, our focus for Q4 is firmly on driving growth, with promotional activity and additional marketing support in place to help recover volumes where possible.’
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