Distil Share Discussion Threads

[haggismchaggis] 12/1/2021 22:27

Glad he's avoiding it, we don't need him in this stock wanting to pump n dump it, all he'd do is cause a spike if enough of his followers do what he says.
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I note he doesn't have a single clue about BRAND VALUE. Or that DIS is (supposedly) building brands so it can sell them for a multiple of the current DIS MCap. So much for 'analysis', he hasn't even got halfway through the job!!
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He also doesn't have a single clue about ROLAND GRAIN, who is the main reason the MCap is now this high.
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If the price dropped because of what some penny share pump n dumper says, RG will just hoover up all the cheap stock and end up with an even bigger percentage of the company.

[lr2] 12/1/2021 20:44

Here you go Pete.

Distil – revenue up, shares up, profit?...
By Steve Moore | Tuesday 12 January 2021

Alcohol drinks brands company Distil (DIS) has made a “Trading update and new product launch” announcement including “despite relatively muted Christmas and New Year celebrations, revenue increased by 22% year-on-year” in the quarter – and the shares have continued recent upwards momentum, to 2.35p…

That is also with the new product launch stated to be TRØVE Botanical Vodka, an all-natural botanical vodka spirit targeting trends towards lower alcohol-by-volume offerings. It is added that it “has already been awarded two gold medals and a silver medal in the prestigious ‘Low & No Masters 2021’ organised by The Spirits Business”. However, it is customer demand which matters – and the launch is not due until “late February”.

I previously noted I’d want to see significant scale impact of the noted marketing costs (oops) “marketing investment” here – and the latest includes the noted revenue growth “supported by up-weighted marketing investment”.

First half revenue was £1.9 million, though gross profit £1 million and “administrative expenses” £0.9 million including £0.6 million of “advertising and promotional costs”. Although the company states it is “unable to provide market guidance for the full year… as Q4 has commenced with further restrictions and uncertainties in all major markets”, what about any insight on profit and the balance sheet to the end of its third quarter?… Er, nope!

With the above and the 30th September 2020 balance sheet having shown cash of £0.6 million and other, ex-intangible, assets of £1.9 million against current (and total) liabilities of £0.4 million versus a current market cap of £11.8 million, I’d still want to see sustained meaningful positive impact from the ‘up-weighted marketing investment’ here to reconsider my cautious stance of avoid.

[petersinthemarket] 12/1/2021 20:33

Registered users only

[waterloo01] 12/1/2021 18:19

I’d still want to see sustained meaningful positive impact from the ‘up-weighted marketing investment’ here to reconsider my cautious stance of avoid.

[petersinthemarket] 12/1/2021 12:40

As an aside, we might note that almost all of our competitors, including giants like Diageo, have reported reductions in revenue for last year, not increases.

Some suffered more badly than others. ELLC reported in October 2020 that they had taken a 95% hit to revenue due to the pandemic.
pete

[petersinthemarket] 12/1/2021 12:36

On balance, an excellent report with useful progress on all fronts.

I was particularly interested in the exports. Although coming off a low base, a 200% increase is highly creditable under present circumstances and is beginning to make export a useful part of the offering.

Briefly, RedLeg is now on offer at RG's Potstill Spirits in Austria and our gin and rum is available in several countries as far apart as Australia and the Netherlands. Blackwoods gin is a real favourite in Spain and our special Small Batch Gin is exported to USA.

The 25% reduction in Blavod is encouraging, as a much greater hit might have been expected. Despite the total loss of sales in the travel areas of aeroplanes and ferries, Black Vodka supplies are still being distributed from Germany to eager buyers across eastern Europe and the USA and I expect this sector to recover well once the covid restrictions begin to ease.

As a reminder of where we have come from in export, the following note was published on p40 of last years Annual Report for yr end 31mar2020:
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Revenue: UK 2,227,000 + Export 214,000 = £2,441,000
Gross profit: UK 1,310,000 + Export 136,000 = £1,446,000

--The directors have decided that providing a geographical split by two
locations, UK and Export, offers an enhanced indicator of business
activity.

-Only revenue and gross profit can be easily identifiable when splitting
between UK and export markets.

-All trade is undertaken and assets are held in one geographic location,
being the UK.

-Sales revenue relates to the net value of shipments from Distil to
distributors and wholesalers and do not reflect consumer sales.

-During the year ended 31 March 2020, 77% of the Group’s revenue was
derived from one wholesale distributor (2019: 88%).

-All of this related to UK revenue.

-There were no other customers who accounted for more than 10% of the
revenue.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
pete

[haggismchaggis] 12/1/2021 12:09

We also have a double whammy brewing!
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Right now people are buying loads of spirits online and through supermarkets, but once Covid restrictions end later this year in the build up towards XMas, everyone will be piling into bars to celebrate with friends and family, so sales should surge again in Q4.

[haggismchaggis] 12/1/2021 12:04

What I find REALLY interesting is this bit: "Our FIRST new product launch in 2021".
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So more launches to come this year then!

[berny3] 12/1/2021 10:48

Daz, agreed it is the growth in the export market which is interesting. My thoughts are that Blackwoods Gin is making up a high proportion of that, which is good nes and well thought out strategy.

[daz1712] 12/1/2021 10:26

2020 was a difficult year for any business and to increase revenue by any amount without any supply chain issues and to manage to develop a new brand in the process, well done Don Goulding, Shaun Clayton and Kate O’Connell and the teams for the hard work and dedication. Roll on 2021

[berny3] 12/1/2021 10:24

A few figures which I have run

estimating 70% increase in revenue on last year would give the following

Revenue £3.5mln
Based on 8p profit per £1 of revenue equates to pnl £303K

Estimate case sales (12 bottle cases) 50,000
crnt mrkt cap £11.8mln equivalent of £235 per 12 bottle case: Estimated revenue on a 12 bottle case = £72 market value is 3.26 times case revenue.

p/e = 38

Diageo has a p/e = 49.85
Remy Conitreau has a p/e = 95.08
Fever Tree has a p/e = 59.16

[bprofit] 12/1/2021 10:11

This is an excellent update and things are looking very good here for significant increase in share price.. but Janekane be patient.. This story will not go unnoticed and it will soon get tipped in different places... we could see a real build in share price over coming months as we approach full year results..In the meantime it is not impossible we get a surprise takeout bid or some other exciting update with the new majority shareholder in place.. Good times ahead.

[janekane] 12/1/2021 09:56

Yes your right chill town but with all pump n dump merchants they spend a grand then the rest of their lives pumping with the hope of dumping
This is the time we should see a massive change to our holding# but pump n dumpers haven’t got funds to buy when needed

[thepopeofchillitown] 12/1/2021 09:48

It is a very good update but this is up nearly 100% over the last 2 months I and dont think the numbers today are going to push is up further short term. I'd expect this to be flat until year end unless of course we have some unexpected news. As we all know patience is the name of the game with this one.

[daz1712] 12/1/2021 09:43

Very positive update on Revenue surge continuing with Blackwoods gaining more than I expected and Redleg doing as expected, Should be in the 4-4.5 million range for full year revenue, a strong base to build future growth with RG on board will expect similar positive news in the future

[janekane] 12/1/2021 08:31

For all our regular posters who contribute to our board we need buyers now today or our little rise will drop back to 2.2 so if your thinking of buying and your finger is hovering over the buy button
Press the bloody button I managed a small buy first thing

[chinese investor] 12/1/2021 08:08

Great RNS !

[clermontace] 12/1/2021 07:57

Blackwoods Gin continues to prove its popularity too.

[clermontace] 12/1/2021 07:56

Just reading now....it has come a week earlier than I thought.

Outstanding growth.

RedLeg continues to boom with domestic sales running at double what I would have been satisfied with (as previously posted).

And exports are roaring.

Well done DG.

[berny3] 12/1/2021 07:31

Very good update. First glance take away is growth in exports. This trading update is 200% growth yoy in October it was 165% yoy.

Domestic market share is growing strongly way above average (see Gin has also pushed forward well) and now we are opening new markets with exports. Very exciting and potential for exponential growth.

[haggismchaggis] 12/1/2021 07:18

Great news today! I think the new Tr0ve will be a big selling brand, just what a large market is looking for. No mention of RG, I'd have thought some comment would have been appropriate. Surely RedLeg or Blackwood's are now big enough to sell, still growing way faster than their sectors, so put them up for sale and see if anyone offers a decent price for either of them, after all, it is supposed to be our core strategy to build and sell brands.