The Distell Group is reaping the benefits of a revised corporate strategy, making impressive headway at home and encouraging progress in Africa to deliver volume and value growth ahead of many of its global peers.
Amidst challenging global markets, the producer of wines, spirits, cider and other RTDs, rose its revenue year-on-year by 10.4% to R19.6 billion on a sales volume increase of 5.7% for the 12 months to 30 June 30 2015. The company’s biggest gains have been in the domestic market, where revenue increased by 11.8%, and sales volumes by 6.7%.
We are extending our penetration of the domestic market and have implemented more rigorous pricing and promotion strategies across our brand portfolio,” explained Distell’s managing director, Richard Rushton.
“These factors, coupled with the growth of our core wines and ready to drink brands, have assisted our performance at home. What we are developing in South Africa can now be selectively applied in other priority markets.”
The company’s wines performed very well in the local market, ciders grew at a moderated pace and although spirits volumes were flat, revenue growth was good.
Sub-Saharan markets excluding South Africa produced revenue growth of 11.6%, with volumes up by 6.6%. The region contributed 51% to Distell’s foreign revenue. Noteworthy increases had come from Angola, Mozambique, Zambia and Kenya.
A final dividend of 188 cents per share has been declared, representing a total dividend of 346 cents.