Alcohol maker Distell registers R34 billion profits, surpassing pre-Covid levels

One of the world’s biggest alcoholic beverage producers, Distell, has announced a major relief as they have registered revenue that surpassed pre-pandemic levels. 
 
The company suffered and was massively hit by the ravaging Covid-19 which forced the South African government to halt AND limit alcohol sales and distribution. 
 
However, the company has now released results, saying the revenue for the year to end of June has surpassed 2019’s pre-pandemic levels. 
 
In its results released on Thursday, the liquor producer has collected R34 billion for the period and that is an increase of 21% on 17.6% higher volumes – its headline earnings were up 37% compared to 2021. 
 
“Impressive revenue growth was achieved against a backdrop of rising commodity cost pressures, global supply chain disruptions, an increase in the cost of imported goods, and glass shortages in our domestic market caused by rampant demand for Savanna cider and core spirits brands,” said Distell as per News24. 
 
The Western Cape-based company saw pandemic-related alcohol sales bans in the first half of the year but the improvement in revenue will come as huge relief. 
 
“In the local market, the group’s revenue grew and volumes grew by 24.4% and 18.7% respectively. The growth came from all three of its categories: wines, spirits and ciders, and ready-to-drink products,” reports the website. 
 
“The group’s popular Savanna brand, led the growth, together with Hunter’s and Bernini. The biggest growth in the wines category came from Drostdy-Hof, J.C. Le Roux sparkling wine, and 4th Street brands.” 
 
In their stable, the company also owns brands such as Amarula, Klipdrift, Nederburg and Bain’s whisky but the alcohol maker continued to see growth outside South Africa, with its other African markets growing their revenue by 14.4% and sales volumes by 16.3%.  
 
Taking a glance at its international markets outside of the African continent, Distell’s profits went up by 8% and its volume growth was 9.4%, most of it coming from single malts and Amarula. 
 
Meanwhile, the company has announced the suspension of its dividend payments as the Heineken beer transaction continues and it confirmed the transaction is still expected to be concluded before the end of 2022. 
 
Main Image: Distell Wine/Twitter 
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