Nederburg maker Distell lifts earnings, even as sales fall
By Nick Hedley - Mar 4th, 13:08
Distell Group, which makes Nederburg wines and Klipdrift brandies, reported a double-digit increase in earnings for the six months to December, even as sales volumes fell in SA.
Headline earnings rose 12.1% to R1.3bn as revenues climbed 7.3% to R14.4bn. The company lifted its interim dividend by 5.5% to 174c a share.
In SA, comparable revenues increased 7.8%, despite a 2.1% decline in sales volumes as declining disposable income weighed on peak-season trading, the company said.
“As previously guided, the group took proactive pricing decisions in the period which had a positive effect on revenue.”
While most categories grew, brandy volumes declined as consumers “traded down to value offerings and to beer”.
The group’s other African markets recorded comparable revenue growth of 21.1%.
“Nigeria, Kenya, Zambia and Mozambique all recorded strong growth across all three categories as we continue to build our local production and route-to-market across the markets,” Distell said.
Sales volumes from outside Africa declined by 6.5%, mainly because of adverse trading conditions in Europe and North America, where the group has curtailed sales of lower-margin wines. But comparable revenues increased by 3.7%.
Meanwhile, Distell said it had secured “sufficient grape and wine supply” for the coming months, given that the 2019 harvest was not expected to be higher than the previous year.
“We will continue to defend and grow our South African business with a targeted annual 0.5% increase in market share across our portfolios,” the group said.
It would also expand local production and route-to-market platforms in selected African countries. “We anticipate further growth as we invest behind and leverage off opportunities in mainstream spirits and wine as well as cider and ready-to-drink products.”
Beyond Africa, Distell aimed to grow its premium spirits portfolio while also restructuring the wine portfolio.Business Live
Richemont lifts dividend 5% as online platforms boost sales
17/05/2019 - 08:52
Richemont chair John Rupert says group sales rose 27%, 'reflecting growth across all business areas and distribution channels.'
Brand engagement and the seniors' market: golden truths about the golden years
13/05/2019 - 11:19
It’s no secret that we live in a youth-obsessed society. This is perhaps no more evident than in the contemporary branding, media, marketing, and entertainment industries. Page through any mainstream publication, peruse the advertising screened on prime-time television or consider the media personalities that are held in the highest regard to see just how much youthfulness is lauded. Even from a strategic perspective, there is hardly a brand in existence today that is not affording consideration to attracting and engaging the “youth market”.
Motivated employees drive business success
13/05/2019 - 09:26
With only 15 percent of employees globally engaged with their jobs, according to Gallup, executives are finding it tough to get people more actively involved in the business. The days of simply doing a job and getting paid for it are long gone. In the digital workplace, employee engagement is vital to boosting productivity, reducing staff churn, and improving customer satisfaction and company culture.
The importance of BC and DR
10/05/2019 - 15:44
According to Shaun Searle, Country Manager - African Regions at Redstor, organisations need to realise that business continuity (BC) and disaster recovery (DR) entail entirely different strategies with both being vital to keeping a business operational in a globally competitive marketplace.
How e-tailers can survive the slow economy
10/05/2019 - 10:18
Talk of a looming global recession continues to impact emerging markets. And, as South Africa continues its longest downward cycle in many decades, local business owners are actively looking for ways to shore up ahead of future uncertainty.