First quarter trading update (1 July 2019 to 30 September 2019) Distell Group Holdings Limited (Incorporated in the Republic of South Africa) (Registration number: 2016/394974/06) Share code: DGH ISIN: ZAE000248811 ("Distell" or “the Company” or “the Group”) FIRST QUARTER TRADING UPDATE (1 JULY 2019 TO 30 SEPTEMBER 2019) During the first three months (1 July 2019 - 30 September 2019) of the new financial year ending 30 June 2020 (FY 2020), Distell recorded single-digit Group revenue growth with single-digit volume decline, compared to the corresponding period in the previous financial year. In South Africa, tough trading conditions persist where consumer spending remains subdued resulting in an adverse effect on the broader retail sector. Low single-digit volumes declines were recorded alongside single-digit revenue improvement. Revenue growth in the ready-to-drink (RTD) segment continues to take share from beer which we will continue to leverage and drive focused investment and customer execution. Our wine portfolio experienced overall flat revenue growth due to increased grape and wine prices being passed through to the consumer, due to the drought effects on the 2018 and 2019 harvests. However select mainstream and premium wine brands continued commendable revenue growth despite this. Revenues from spirits also recorded incremental revenue growth as consumers trade across the portfolio seeking value. We will continue to capitalise on trends in the segment and our strong position in brandy and whisky, whilst we build on our white spirits performance. We continue to leverage and invest behind core brands and execution to deliver an increased customer footprint and defend market share gains made in FY2019. In the rest of Africa, we achieved single-digit revenue growth off a high comparative period. The previous period included stronger sales revenues from both Namibia and Zimbabwe which have since been affected by varying levels of challenging economic conditions. Key markets such as Kenya, Botswana, Zambia and Mozambique continue to grow double-digit revenues and volumes. The mainstream spirits category continues to record double-digit revenue growth off a high base alongside growth in RTD’s across the continent. Comparable Volume and market share performance in Best Global Brands (BGB) continues to improve whilst further currency devaluation and constrained consumer spending marginally affecting Revenues. We remain committed to the potential of the Angolan business coupled with a newly implemented VAT and excise regime in Q2 FY 2020 which may result in market improvements. Our Kenyan operations are expected to deliver on previous trends whilst our new production facility in Nigeria is demonstrating early, commendable performance. We will continue with a measured investment approach behind our local production and distribution footprint in Africa, alongside select inorganic opportunities. In the international markets, overall revenues were incrementally lower with improved constant currency earnings as planned. Our venture business continues to focus its portfolio on higher margin premium spirits which grew revenue by double- digits. Strategic brands such as Bunnahabhain, Scottish Leader, Amarula and Deanston all recorded revenue growth. Whilst premium wines recorded overall lower comparable revenue due to its business recalibration, key brands showed higher revenue and volume growth in influential markets such the Netherlands, Germany and Nordic countries. We will continue to implement our new operating model and portfolio in select regions whilst we also position the business for partnerships to grow its route- to-market (RTM). The outlook for economic growth remains mixed with varying levels of political and economic risks in many of the markets in which Distell trades. Whilst the Group has ensured future cost savings through efficiencies and an improved operating model, this needs to be balanced with maintaining market share and growing revenues. The Group will continue to defend and grow its domestic market share, invest responsibly behind the expansion of its African RTM while creating a more agile and efficient business which aims to enhance margins going forward. The abovementioned information does not constitute an earnings forecast and has not been reviewed and reported on by the Company’s external auditors. Stellenbosch 23 October 2019 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 23/10/2019 11:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 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