By:

UK spirits maker Distil has seen its sales volume and profit

away for the final

of its financial year.

The RedLeg Spiced Rum-maker

said that sales between January and March fell 47 per cent year-on-year, despite an overall eight per cent rise in full-year volumes.

The slump could not be corrected by the group’s 78 per cent year-on-year increase in advertising spend to £130,000. During the three-month period, the group earned a total gross profit of £205,000, a 19 per cent decrease year-on-year.

</p

Dan Goulding, the chairperson of the London-based company Distil, mentioned that the firm had encountered a challenging trading quarter due to the demanding conditions of the broader market.

However, the spirits manufacturer, who is also known for producing Trove Vodka and Blackwoods Gin, seems to have a more positive overall outlook, according to Goulding.

For the full year, there was an 8 percent increase in cumulative volumes, and a 17 percent surge in annual revenues to £1.55 million.

The resultant gross profit stood at £759,000, which is 11 percent more than the previous year.

To build a strong start to the year, the company said it has tightened its service to the retail markets through a partnership with fellow UK drinks producer Global Brands.

The company said it expected to issue guidance for the upcoming year when it announces its final results in June.

Alcoholic drinks producers are having a harder time than they have perhaps been used to in the UK at the moment.

Recent research showed that Brits are spending less on nights out to prioritise the health of their wallets and bodies.

Additionally, UK nightclubs, a key trader for producers, have never recovered from the effects of the coronavirus pandemic, with over a third having closed for good since June 2020.

Share this article