Distil Plc (LON:DIS) shares jumped 17% in Wednesday morning’s deals as the premium UK spirits brand owner reported a surge in revenue during in its first quarter, April through June.
Unaudited year-on-year first quarter revenues increased by 21%, the company said in a statement.
Overall sales volumes were flat as a sharp rise in retail sales offset the loss of duty free and travel retail sales amid the international travel restrictions.
Retail sales increased through both in-store and on-line channels.
“Despite COVID-19 related challenges, including production plant closures during April, we continued to actively market and promote our brands throughout the lockdown period and successfully managed stock supply to all customers against a significant increase in demand for our products at the consumer level,” said Dan Goulding, executive chairman.
He added: “Whilst currently unable to provide full year guidance due to uncertainties surrounding the global pandemic, we are able to give a reasonable insight to the half year to 30 September 2020, as many of our export orders are now in hand and we are aware of major customer depletion forecasts to September.
“Naturally we remain cautious due to the risk of further lockdowns and all associated disruption.”
Goulding told investors that Distil expects a 75-85% increase in year-on-year revenue over the half year to September 30. The company plans to increase marketing investment by 100% to 120%.
Operating profit is meanwhile seen between £50,000 to £70,000, versus £1,000 of profit on £824,000 of turnover in the comparative period of 2019, when £219,000 was spent on marketing.
“These are forecasts for the half-year (April to September) only and we do not necessarily anticipate these levels of increase to continue throughout the full year,” Goulding added.
In London, Distil shares rose by 0.19p or 17% to change hands at 1.29p – valuing the company at close to £6.5mln.