DISTELL GROUP LIMITED - Trading update 1 July to 30 September 2014

Trading update 1 July to 30 September 2014

Distell Group Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1988/005808/06)
Share code: DST
ISIN: ZAE000028668
("Distell" or “the Company”)
                                   

TRADING UPDATE 1 JULY TO 30 SEPTEMBER 2014

During the first three months (1 July-30 September 2014) of the
new financial year ending 30 June 2015, Distell recorded total
revenue growth of 11% compared to the same corresponding period
in the previous financial year.

Our domestic South African operations recorded pleasing revenue
growth on the back of stronger growth from our brandy and wine
brand portfolios.

Africa revenue growth has been slightly below last year,
affected mainly by:

   -   prior year shipments to Angola in advance of an impending
       customs duty increase, in the first quarter of the calender
       year;
   -   export sales in our other key markets of Kenya, Namibia and
       Ghana reflected strong revenue and volume growth as did sales
       in Mozambique and Zambia on the back of our expanding presence
       in these countries;
   -   volume and revenue growth in Tanzania and Zimbabwe also grew
       robustly despite challenging economic and regulatory
       conditions; and
   -   export sales to Nigeria slowed due to strong prior year
       shipments and slower in-market sales than forecast, although
       progress is being made to build our route to market and
       production presence in the country.

Our   international  operations   outside of  Africa   recorded
satisfactory revenue growth compared to the same period in the
prior year. Conditions in Europe and Asia remain very
challenging and highly competitive.

Post the Group’s year-end, Distell announced the following
important transactions:

    -   The acquisition of a 26% minority share in KWA Holdings
        East Africa Limited with the closing of this transaction
        anticipated by the end of November 2014.
    -   The acquisition of the minority interests in International
        Beverage Company Limited. This acquisition in the US will
        allow Distell to consolidate its wine and spirits brands
        under one import distributor, over which it has full
        control, which in turn will permit Distell to better
        leverage a core portfolio of wines and spirits in selected
        states in this market.


Trading conditions are expected to remain unpredictable and
volatile domestically and in our traditional international
export markets. The group continues to invest aggressively in
its African expansion strategy as well as in other selected
emerging markets that offer potential for long term growth.

The above mentioned figures do not constitute an earnings
forecast and have not been reviewed and reported on by the
Company’s external auditors.
 

Stellenbosch
22 October 2014

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

 

 

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