Distil (AIM:DIS) PLC, owner of drinks brands such as RedLeg spiced rum and Blackwoods gin, reported a 37% surge in first-half sales and a reduction in losses and said the effect of the recent UK duty hikes on alcoholic beverages was not yet clear.
Following a strategy remodel, the company said the return to growth this year indicates its successful recovery, though it anticipates continued cost pressures in the short to medium term.
It is working with its suppliers to cut the cost of goods following "significant" rises caused by inflation and the war in Ukraine.
"We expect to begin to see the benefits of the reductions secured through this close collaboration from H2 onwards," said chairman Don Goulding.
Loss before tax was cut to £314k for the six months ended 30 September compared £555k.
Goulding said: "H1 has not been without its challenges, as the business continues to face wide-spread cost of goods increases in response to inflation and the war in Ukraine, as well as a UK duty increase on all alcoholic beverages.
"Reflecting the economic climate, consumers globally remain cautious, the impact of which is being felt in the trade and is expected to continue in the short to medium term."