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Home » Distil Seeks Urgent Funding As Revenue Plunges By 55% Amid Economic Challenges

Distil Seeks Urgent Funding As Revenue Plunges By 55% Amid Economic Challenges

Spirits company Distil has announced a significant decline in revenue due to inflation, cost-of-living pressures and a substantial increase in alcohol duty. The AIM-listed firm, which owns brands such as RedLeg Spiced Rum, Blackwoods Gin and Vodka, and Blavod Vodka, reported a 55 per cent drop in revenue for the four months from April to June this year.

The company has revised its full-year guidance downwards and is seeking immediate short-term funding, stating it is currently “exploring options”.

Executive Chairman Don Goulding commented: “The business had anticipated lower sales in the first four months of the year due to phasing trends, however the results achieved sit below expectations.”

He further noted that “The global alcohol market has been facing persistent challenges in recent years, with global drinks industry data service, IWSR, recording a decline in global beverage alcohol volumes in 2023 for the first time in 30 years, with difficulties continuing into 2024.”

Goulding attributed the decline to an “extraordinarily challenging” economic environment, as consumers grapple with persistent inflationary pressures that have strained spending, as reported by City AM.

“While this is an issue affecting all global markets, for 2024, this has been exacerbated in the UK by the poor weather, leading to further curbs on socialising both in and out of home,” he added.

Distil isn’t the sole company facing hardship: top-tier drinks firm Diageo has reported a significant drop in annual profit, marking its first sales slump since the pandemic. The FTSE 100 company, which trades not only spirits but also Guinness and Baileys, saw a decrease in profit by $304m (£237m) a dip of 4.8 per cent.

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