Distil Share Discussion Threads

[threadworm] 17/1/2018 08:53

thepopeofchillitown - DIS don't own stella (that's an Interbrew International brand) so sales of this are unrelated.

[haggismchaggis] 17/1/2018 08:48

How is it a falling star? It's the same price now as it was before the RNS, it hasn't fallen anywhere. Typical trading website BS.

[thepopeofchillitown] 17/1/2018 08:20

I did mention many months ago that I was concerned how the stella sales growth could continue. It will come as no surprise to regulars here that haggis shot me down claiming it was easily achievable. Well it's not is it. 20% is decent but it's going to take a lot longer than most expected to generate serious profit. The reach into 500 plus stores is excellent but I feel now that without a serious uplift from that the US deal is make or break.

[muffster] 17/1/2018 07:46

Share listed as a falling star on stockopedia. Gets low rating. Nice gin though

[thepopeofchillitown] 17/1/2018 07:39

Available in several Asda's in Stockport area.

[tonys8] 17/1/2018 04:09

Red Leg available on line in Asda in Shropshire, no problem.

[boffster] 17/1/2018 00:58

Indeed, update solid enough, hardly earth shattering, and growth looks to be slowing. I expect Distil will still be losing money, despite having their products in the major multiples for a while now, and without any clear path to profitability, and unless some white knight emerges who will somehow pay a premium for some brands that don't particularly sell very well, I feel it is only a matter of time before DIS has the placing begging bowl out once more.

PS. RedLeg Still not available on ASDA.com in my area (it used to be) same goes for Blackwoods in Tesco. I would be concerned, if I were a shareholder.

[haggismchaggis] 16/1/2018 16:31

I think there is massive growth ahead with USA sales, the new Blackwoods products, Jago's creeping up behind, 520 new UK stores, Blavod also creeping up behind, and RedLeg selling very well and still growing.

Some can't see further than the end of their nose.

[dante17] 16/1/2018 14:03

Yes, finally getting the US distribution deal is now a must and they have to aim this side of summer to complete it.

[malcontent] 16/1/2018 13:58

threadworm

astute balanced comment from your good self, I think, and reflected in the underwhelming share price action today - I bought in much lower, then added at 2.25p but I remain to be convinced if this is going to be one of those lovely "buy, hold and lose no sleep" stocks- I think the next 2 quarters need to see some meaningful momentum building in terms of deals ; deal-making is a key factor for tiny companies like Distil - they don't have any clout in terms of size, so they will have to convince with the sales pitch - I hope they have the right staff for that- does anyone have an opinion/ better knowledge than me?

[acdc52] 16/1/2018 12:26

Distil Plc is a long term very safe stock (compare to most AIM stocks), not suitable for get rich quick speculators.

[threadworm] 16/1/2018 11:58

Decreasing yr on yr growth and no meaningful progress (as yet) on the US.

.....sales continue to increase yr on yr, but lets all be honest, for at least the last two quarters the rate of growth has dropped off rather significantly.....(although I acknowledge the corresponding period last year, apparently, included some hefty pipeline orders). Even still, with the increased distribution Redleg has won over the past year, the sales increases are disappointing.

..Very, very good new distribution for the Gin coming up in the 4th quarter......although I'm not entirely sure about the new bottle design. I don't 'get' the roaring 1920's look, which the company claims it has gone for. That said, it might be suited to the American market and that may have been partly behind the redesign....

...the brand seems to have come adrift from it's shetland / norse heritage.....loved the original bottle with viking ship logo etc and cork stopper.

...I understand the rationale behind getting the right master distributor for the States (to cover redleg too) but it is taking them far too long and I have grown skeptical as to why this is the case. I think they are struggling to find the right deal, rather than them perusing a 'shortlist'. I don't think so. but that's just my opinion and I may be wrong.

No mention of Diva or Jagos.....both of which had received hefty investment /redesign but no re-launch to speak of.

Mixed trading update with flattish results to come....although the gin pipeline orders (to come) may bolster things a bit, depending on which period they come (ie q4 or q1 of the new financial year).

A bit underwhelming. I had expected to see better growth given how buoyant Redleg was perceived to be on Amazon and with much increased distribution.

I can see some shareprice weakness in the short term. Not intending to trash the stock just looking at the update realistically. Will see what brings,...

rgds.

[dietcoke197] 16/1/2018 11:57

That's a good update.

I like the fact that sales growth is ahead of promo spend growth for the 3rd qtr. The increase in Blavod might pressurise margins a little so I've been conservative there. End result is 98K for the year.

Projections for 2019 and 2020 also look very encouraging. The table will copy/paste into a spreadsheet to make it easier to read


Yr ending
Mar 31st 2,020 2,019 2,018 2,017(actual)

Sales uplift % 17 18 20 45.0
Gross margin 57.0 57.0 57.0 58
Promo spend % 15 15 15
Revenue 2720 2325 1970 1642
Cost of sales -1170 -1000 -847 -692
Gross Profit 1550 1325 1123 950

Promo costs -584 -508 -442 -384
Other admin -644 -613 -584 -556

Contribution 966 817 682 566
Total admin -1228 -1121 -1025 -940
Profit 323 204 98 10
Profit change % 58.0 108.4 880.0

[petersinthemarket] 16/1/2018 09:40

Some useful buying this morning but probably not enough to push the share price on very far.

[onedayrodders] 16/1/2018 09:39

Not sure about ripping u and starting again ... reads as if they have spotted further costs reduction by combining the US Sales launch be agreeing a cost saving exclusive with a single distributor.

[chinese investor] 16/1/2018 08:33

Great News !

[baticle] 16/1/2018 08:23

I haven't Haggis but will do when I get in Later, I take it she does
the Marketing for the Brands.

[haggismchaggis] 16/1/2018 08:20

Baticle, Have you sent that suggestion to DIS?[e-mail]

[thepopeofchillitown] 16/1/2018 08:17

Decent enough update. Full year in line so no fireworks. The usual suspects still making stupid comments about the US deal. Now it's Q1 2018! Reads to me like they've ripped everything up on that one and started again. Sure it will happen eventually.

[baticle] 16/1/2018 07:49

It's possible...I've not been in my Local One recently but they were running their
Rum Shack Promotion for many Months, it was going 4 months after I took my first photo of it. Greene King have some Quality outlets after they took over Spirit Pub, The Old Chef & Brewer Pubs do some amazing trade and some high-end drinks such as Red Leg & Blackwoods would go down a Storm there

[haggismchaggis] 16/1/2018 07:41

Baticle, I wonder if Witherspoons had some exclusivity period agreed, just regarding other major pub chains?