Nederburg maker Distell lifts earnings, even as sales fall
Distell Group, which makes Nederburg wines and Klipdrift brandies, reported a double-digit increase in earnings for the six months to December, even as sales volumes fell in SA. Headline earnings rose 12.1% to R1.3bn as revenues climbed 7.3% to R14.4bn. The company lifted its interim dividend by 5.5% to 174c a share. In SA, comparable revenues increased 7.8%, despite a 2.1% decline in sales volumes as declining disposable income weighed on peak-season trading, the company said. “As previously guided, the group took proactive pricing decisions in the period which had a positive effect on revenue.” While most categories grew, brandy volumes declined as consumers “traded down to value offerings and to beer”. The group’s other African markets recorded comparable revenue growth of 21.1%. “Nigeria, Kenya, Zambia and Mozambique all recorded strong growth across all three categories as we continue to build our local production and route-to-market across the markets,” Distell said. Sales vol...
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