DISTELL GROUP LIMITED - Trading update 1 July 2017 to 30 September 2017

Trading update 1 July 2017 to 30 September 2017

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

TRADING UPDATE 1 JULY 2017 TO 30 SEPTEMBER 2017

During the first three months (1 July 2017 - 30 September 2017)
of the new financial year ending 30 June 2018, Distell recorded
muted revenue growth compared to the corresponding period in the
previous financial year.

Our domestic South African operations recorded overall revenue
growth in an environment of near stagnant economic growth and
intensified  competitor  activity  as   consumers  seek  value
offerings.

In the rest of Africa we achieved good revenue and volume growth
in Zambia and Ghana. The performance of KWA Holdings E.A.
Limited, of which we acquired the majority shareholding in April
2017, was also encouraging with volume and revenue growth well
up on the previous year. However, the overall performance of the
African region was negatively impacted as we continue to feel
the effects of low commodity prices on economic growth across
many parts of the continent.

In the international markets, the US, Netherlands, Switzerland
and New Zealand are showing good growth, with global trading
conditions remaining lackluster and highly competitive.

The outlook for economic growth remains volatile and uncertain
in many of the markets in which Distell trades. The Group
continues to simplify its business to create more focus while
enhancing efficiencies and lowering our cost base.

The abovementioned information does not constitute an earnings
forecast and have not been reviewed and reported on by the
Company’s external auditors.

Stellenbosch
27 October 2017

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

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