Distil (AIM:DIS) PLC, the owner of alcoholic drinks brands such as RedLeg Spiced Rum, nosedived 46% to 0.4p after a tough third quarter.
Revenues in the three months to December 2022 decreased by 48% to £411,000, with full-year sales expected to be “significantly” below market expectations and with underlying (EBITDA) losses forecast to be £600,000, in line with expectations.
Much of this meagre performance was attributed to a significant one-off reduction in stock during the Christmas period within a major retailer.
Distil (AIM:DIS) also bemoaned a one-off reduction in UK market stock cover associated with a previously forecast removal of a UK distributor.
“The third quarter, and December in particular, is the key trading period for our business, however, the wider UK spirits market was softer than anticipated during the quarter, with overall UK spirits sales down in response to a challenging economic environment,” said executive chairman Dan Goulding.
He moved to reassure investors, however, stressing the issues which dogged the company in the third quarter were one-off and will not continue in the next financial year.