Wrap Text
Reviewed Group results for the year ended 30 June 2021
Distell Group Holdings Limited
(Incorporated in the Republic of South Africa)
Registration number: 2016/394974/06
JSE share code: DGH ISIN: ZAE000248811
("Distell" or "the Group" or "the Company")
Reviewed Group results for the year ended 30 June 2021
1. FINANCIAL RESULTS - SALIENT FEATURES
- Group revenue and volumes up 26,3% recovering to pre-COVID-19 levels
- Domestic revenue up 29,4% alongside market share gains across all categories
- Africa revenue (including BLNE) up by 22,9% as route-to-market expands
- Strong and profitable international premium spirits performance continues
- Excise duty contribution up by 31,8% to R8,3 billion
- EBITDA
- Reported up 99,8%
- Normalised and adjusted for forex up 87,3% (1)(2)
- Headline earnings
- Reported up 227,3%
- Normalised and adjusted for forex up 302,4% (2)
- Return on invested capital improves 10bps on pre-COVID-19 levels
- Dividend payments remain suspended due to ongoing discussions with Heineken
1 Normalised earnings before interest, tax, depreciation and amortisation (EBITDA) refers to EBITDA adjusted for the: (a) profit or loss on
disposal and impairment of property, plant and equipment (PPE) and intangible assets; (b) retrenchment, legal disputes and merger and acquisition
related costs, and (c) the expected credit loss on Zimbabwe savings bonds in the prior year.
2 Foreign currencies and abnormal transactions affect the Group's performance. Where relevant in this report, adjusted non-IFRS measures are presented.
These adjusted measures represent pro forma financial information. A reconciliation of the pro forma financial information to the equivalent IFRS metrics
is provided in note 13 to the condensed consolidated financial statements.
Group revenue increased by 26,3% to R28,3 billion (2020: R22,4 billion). Headline earnings per share increased by 227,1% to 769,6 cents (2020: 235,3 cents),
and earnings per share by 519,3% to 880,6 cents (2020: 142,2 cents), in line with previous guidance given on 16 August 2021.
2. DIVIDENDS
The Group released a further cautionary announcement today with regards to an update on discussions between Heineken and Distell (the Potential Transaction).
While the discussions are progressing, several aspects still need to be considered and ultimately agreed upon. The Potential Transaction, should it proceed,
will be subject to several conditions, one of which relates to Distell not making any distributions, including dividend declarations to its shareholders in
respect of the financial year ended 30 June 2021.
In light of this, the board has taken a decision not to declare a dividend for the financial year ended 30 June 2021. In the event that discussions regarding
the Potential Transaction are terminated, the board intends to declare a dividend in respect of the financial year ended 30 June 2021.
Shareholders should take note, that although discussions have progressed, there is no certainty that the remaining aspects will be successfully resolved
and agreed. The board believes that it will be able to provide more detailed information to shareholders on the Potential Transaction before the end of Q3 2021.
For the financial year ended 30 June 2020, no final dividend was declared due to uncertainty caused by alcohol bans, and to improve the liquidity of the Group
following the impact of COVID-19.
3. SHORT-FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the directors of the Company. It contains only a summary of the information in the full announcement
and does not contain full or complete details. The full announcement can be found at:
https://senspdf.jse.co.za/documents/2021/JSE/ISSE/DGHE/DGHFY21.pdf
The full announcement is also available for viewing on the Company's Investor Relations (IR) section of its website at:
https://www.distell.co.za/investor-centre/financial-results/DGHFY21.pdf
In addition, electronic copies of the full announcement may be requested and obtained, at no charge, from the Company at investor.relations@distell.co.za
or from the Company's sponsor and broker, Rand Merchant Bank.
Any investment decisions should be based on consideration of the full announcement.
The Company has based this short-form announcement on the financial results for the year ended 30 June 2021, which have been reviewed by the
Company's auditor, PricewaterhouseCoopers Inc., who expressed an unmodified review conclusion thereon.
4. RESULTS WEBCAST AND PRESENTATION
Shareholders and other interested parties are invited to join management in discussing Distell's year-end results via webcast and
conference call at 11:00 am SAST on Thursday, 26 August 2021.
Presentation details:
- Webcast link: https://78449.themediaframe.com/links/distell210826.html
- Conference call:
- South Africa (Toll Free): 0 800 200 648
- Johannesburg: 011 535 3600
- Other Countries: +27 11 535 3600
- UK: 0 333 300 1418
- USA & Canada 1 508 924 4326
- Presentation slides will be made available on the webcast and on the Group's website (https://www.distell.co.za/Investor-Centre) shortly
after the live broadcast of the webcast.
- A Q&A facility will be available during the presentation via webcast or telephone.
IR Contact:
Frank Ford
fsford@distell.co.za
Stellenbosch
Approved by the board: 25 August 2021
SENS release date: 26 August 2021
Sponsor and Corporate Broker
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 26-08-2021 07:06:00
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