Stronger rand takes a swig of Distell’s profit
The wine and spirits group warns that consumers are under pressure due to recessionary conditions in SA
Wine and spirits group Distell posted a 15% fall in after-tax profit on revenue up 3.7% in the year to end-June, hit by the stronger rand and impairments. It kept its dividend unchanged from last year. Headline earnings per share (HEPS) fell 3.7% to 708.3c, as headline earnings fell 3.6% — but with the currency effects stripped out, it would have risen 7.4%, Distell said. The company wrote down R315.3m on investments in Bisquit cognac, a British wine broker and the industrial property rights held by its Angolan subsidiary. The final dividend of 214c per share was unchanged from the previous year, for a total dividend for the year of 379c per share, also unchanged. Its cash position improved, to R302.9m, from R102.4m a year ago. SA accounted for R16.5bn of total revenue of R22.3bn, with Botswana, Lesotho, Namibia and Swaziland contributing R1.8bn, rest of Africa R1bn, Europe R1.3bn and the rest of the world R1.5bn. Sales volumes were constant, but in SA rose 1.5% — with a 5.4% increa...
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