Distil Share Discussion Threads

[berny3] 22/10/2017 09:53

Was in a bar last night and they had Blackwoods Gin so a few were sunk.

I am not keen on setting expectations of profit figures too high. To begin making a profit in the first half year will be a result and will lead to a profit for the full year.

I would like to get an update on how the US distribution is progressing in the half year results and as per previously discussed it takes time to get this done well.

Over this half year we will get a better idea of organic growth rates there have been few new distribution deals announced and therefore growth is based upon the distribution base already in existence. To be achieving 45-50% growth rate in sales would be extremely good. Hopefully by this time next week we will all know more.

[onedayrodders] 21/10/2017 11:23

fair enough .. and we will know soon if momentum is still growing

[dietcoke197] 20/10/2017 16:26

US is tricky and if you get it wrong, can cost you dearly.
Also, they can't really go all guns blazing just now.
They are only just profitable.

I wouldn't expect any kind of big contribution from the US this financial year. TBH, they don't need one either. That doesn't mean there isn't work going on to get the deal done. It's just not as vital in the short term that they can't hold out for the right deal.

There is plenty of momentum in UK/europe/AUS.

Blackwoods is growing @ over 50% and is yet to have a large supermarket presence.
Blavod is growing over 100% Year on year without any particular marketing effort.
Redleg is still growing solidly although at a slower pace in H2.


we are well in line for annual profit over £160K

[onedayrodders] 20/10/2017 13:06

I wonder why they aren't going all guns blazing to get Redleg out in the US.
Far be it for me to question Don who is very experienced but just find it strange.

Then again wtfdik

[berny3] 20/10/2017 10:51

50@3.15 100@3.05

[mikkydhu] 20/10/2017 08:49

Red Dragon Rum? Might go down well elsewhere, too.

[multibagger] 20/10/2017 08:33

Not that I know any Mandarin, but the symbols used in Chinese language are also important when how brands are represented.

Some Chinese symbols/letters are considered more auspicious - not sure how RedLeg fits !

On Radio 4 a few weeks ago - apparently predictive texting has its roots in the chinese language....I think it was on the programme "50 things that made the modern economy" by Tim Hartford...

[mikkydhu] 20/10/2017 00:16

It seems difficult enough (or maybe just laborious) to get a prize-winning brand distributed in America. So how much more difficult might it be to get it distributed in China?

I was watching a piece on TV about the difficulty of getting Champagne widely accepted in China. They said red was a lucky colour in China. That got me thinking...with a name like Red Leg Rum at least it starts off on the right foot, so to speak. So I wondered if anyone at Distil had contemplated the enormous prize which might await the company in the far east.

[dante17] 19/10/2017 20:08

Six month results next week hopefully

[texas_caddy] 19/10/2017 19:56

Bprofit - yes sure links have been posted from social media of both being advertised together.

[bprofit] 19/10/2017 19:34

Interesting observation, my local Tesco store now contain a label on each bottle offering a special discounts on fevertree drinks. Seems to be a developing partnership between to the two companies.

[berny3] 18/10/2017 14:54

Brilliant DC. Always good to keep shelf stackers on their toes.

[villarich] 18/10/2017 12:59

Berny - thanks for the L2 insight. Seems the pSP has found some support at the 3.07 / 3.10 mark over the last couple of weeks. Let's hope it's establishing a nice floor to rise from.

[berny3] 18/10/2017 09:34

Market maker quotes are looking positive

Ask
2*3.35
1*3.3
1*3.2

Bid
1*3.1
2*3.05
1*3.0

50*50

[berny3] 18/10/2017 09:28

dc the advertising cost have a correlation to revenue. .i.e that is why contribution is gross profit less advertising.

That ratio advertising to revenue has been

2016 H/y 25% F/y 24%
2017 H/y 22% F/y 23%
est 2018 H/y 25%

I have applied a conservative 25% but you will note that the ratio has been declining which is good.

If we reduce advertising to 22% ratio I get +£41K

Admin costs I have increased by 15%

Previous periods are as follows increase over period

2017 H/y +12% F/y 11%
est 2018 H/y 15%

I am reluctant to apply any positive upside and leave that as a positive surprise if it comes through.

What our figures are showing is an improving business.

I would be very happy with any profit at the end of the h/y as that would demonstrate a business operating profitable throughout the year.

[berny3] 17/10/2017 16:59

OK DC ran some better figures and have the following

Revenue: £1mln +53.5% (average of 61% and 46%)
COGS: £450K inline with previous years ratio 44%
GP: £572K
Advertising: £317K slightly ahead of previous years @ increase @ 25%
Admin: £305K slightly ahead of previous year increases @ +15%
Profit: £11K

That would give a 6 month contribution of £317K

[haggismchaggis] 15/10/2017 21:57

10 trading days to the results? Get those T trades in!

[crbema] 12/10/2017 13:42

Bought 100K for SIPP and 75K for ISA both showing as sells.

[berny3] 11/10/2017 07:53

HMC that would be very nice to see

[acdc52] 10/10/2017 23:01

I bought JOG's shares at 35p a year ago and today I sold it at 350p. Distil will exceed JOG's performance IMO.

[haggismchaggis] 10/10/2017 17:47

I'm thinking profitability of £50k to £60k, but that's just a guess!

[berny3] 10/10/2017 14:28

DC - that is a good question and with the increase in Blavod sales it may improve. I was being cautious.

The bottle cost for Easter sales may have been included in last years result which could contribute to improved margins as well.

The question is whether the company is profitable in the first half of the year.

We should know is a couple of weeks or so.

[dietcoke197] 10/10/2017 14:00

Why do you think the margin will suffer Berny?

That is a figure that has remained pretty consistent the last few years