Distil Share Discussion Threads

[berny3] 28/8/2018 19:03

You have to take account that that is an independent analyst interpretation. With the company the size it is currently we only have one company publishing an analyst report.

Only a few week until we get the next update and should be able to piece a little more information from that.

[petersinthemarket] 28/8/2018 16:51

#5723 - Francis, thanks very much, that helps a lot. I have just spent some time trying to disentangle the article in #5718 but your explanation makes much more sense.

Am I right in assuming that the cost to the company is much the same wherever they place it in the accounts and will have the same effect on 2018/19 bottom line profits.
pete

[daburd] 28/8/2018 15:03

Hi Pete, Re: ATL and BTL, perhaps I can help.

These two expressions were supposedly coined by a Unilever executive pointing at their London HQ and saying that people above a certain floor would work on ATL marketing and those below that line would on BTL marketing. Personally I prefer the more prosaic accounting explanation that ATL marketing is included in COGS whilst BTL is a general marketing expense. This makes sense for large brand owners for whom ATL is the asset they need to invest in to protect their long-term brand value whilst BTL is more tactical, with an immediate sales effect.

Above the line typically involves advertising and more specifically, brand advertising. It is a relatively expensive and medium to long-term activity that seeks to establish an emotional connection between a consumer and a brand.

Below the line typically involves sales promotions. In the spirits world this includes all point of sale activity like price promotions, sampling, other incentives, loyalty promotions etc. The aim of BTL is to encourage trial, sales and loyalty.

A young company like DIS is more interested in the latter than the former and will typically invest in ATL when it has a large enough market to defend.

Hope that helps

Francis

[a_2_b] 28/8/2018 15:02

I'd love it too but it never will let them dream though

[mrdollarbill] 28/8/2018 12:44

IM NOT SORRY IVE SOLD OUT ! Look at it today ! Sea of RED SELLS ! all these RAMPERS talking of 3p was laughable ! I've said and will continue to say 2p coming or lower . DB

[petersinthemarket] 28/8/2018 09:51

Sorry to be thick Berny, but I am no accountant. Are the implications of Above the Line and Below the line marketing costs simply that they occur in the accounts of a different financial year? pete

[dietcoke197] 28/8/2018 09:51

Carcosa,

While Berny is right that supply constraints have not been an obvious issue, they must place an upper limit on year to year growth, particularly with the previous blackwoods vintage which may explain why it was not pushed harder by DG.

I suspect that the 2017 vintage will have been formulated in a way that allows for significant production increases and those will be sen in an Increased growth rate for blackwoods this year and beyond.

As far as redleg goes, production decisions surely have to be taken well in advance to allow suppliers to adjust production and I would think that those decisions must be driven by the company internal growth targets

[berny3] 28/8/2018 09:40

That is at 27% growth in revenue. Note the following comment

"Growth momentum of our key brands continues at a healthy pace, supported by marketing and promotional activities at the point of sale. The gin and rum markets remain buoyant. Our brand performance within these categories is strong and in line with our expectations."

Marketing at ‘the point of sale’ is targeted Below the line marketing (BTL)

The analysis notes discuss At the line marketing (ATL) at that this investment by the company will increase costs and an increase in revenue will be lagged by one year.

My thoughts are that this year focus has maintained on BTL marketing rather than the expected (analysis expected) ATL marketing spend.

[muffinhead] 28/8/2018 08:28

Revenue forecast to increase to £2.5 million for 2019 from £2 million 2018

[a_2_b] 28/8/2018 01:41

Carrefour drive, from what I could ascertain operates in various European countries. Netherlands, Belgium & France probably more tbh. Looking back at the research note of June 2018. It mentions stocking a french hyper market which has been going on since early this year as part of expansion which also includes getting blackwoods and red leg out to Eastern Europe. During the near term it mentions of entering other markets seems like they've entered Japan and Australia in this time. Could have crazy growth/volumes this interim looking rather forward to seeing it.

[acdc52] 27/8/2018 22:46

SP don't tank on small scale tradings, unless large holders sell off. Distil is a profitable business and well poised to go above 10p in due course. DYOR GLA and ignore DeRampers like DB, he sold his shares and now he is sorry. He wants to get back on board but share price keeps going up and he is hoping to buy back at below 1p. He has to wait few centuries now for Distil share price to tank.

[mrdollarbill] 27/8/2018 22:26

Ramping pigs puts investors off on these boards and quite rightly ! I'd be concerned at the minute if I was holding as talk of 3p by some pigs on here suggests that's there sell price "exit price" after that the share price tanks ! Treat with caution here and good luck DB

[mrdollarbill] 27/8/2018 22:22

Ramping pig ! I'll drink to 2p coming soon so cheers

[a_2_b] 27/8/2018 20:25

I'd say that's more probable personally

[rumlover] 27/8/2018 18:39

3p+ before half yearly results.

[a_2_b] 27/8/2018 18:31

Hoping for 1p here

[a_2_b] 27/8/2018 18:30

Can only hope 1p would be better though

[a_2_b] 27/8/2018 18:29

Carrefour messaged me and told me they do not have access to stock in stores but encouraged me to ring my local store to check

[mrdollarbill] 27/8/2018 18:15

Ramping pigs 2p coming soon !

[mrdollarbill] 27/8/2018 18:14

Ramping pig ! My charts tell me 2p

[berny3] 27/8/2018 16:35

not sure it will tell us net profit - will tell us revenue one hopes. And 20% who knows, that is what I have factored in. The increase cost in advertising above and below the line is what is of interest as previously discussed as will know then whether profits are likely to be as what has been forecasted on the analysis note.

[acdc52] 27/8/2018 15:23

Half yearly report would say: revenue up 20%+, Net profit up 20%+, Cash at bank up 20%+. share price should be up 20%+

[acdc52] 27/8/2018 13:36

3p+ coming soon.