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Export markets 'tough' but South Africa's Distell posts 10% rise in annual revenue

Published:  20 August, 2015

The South African wine producer and owner of Scotland's Burn Stewart Distillers has posted a 10.4% increase in revenue in the year to June 30.

South African wine producer Distell has posted a 10.4% increase in revenue in the year to June 30.

The company - whose brands also include Savanna cider and Bunnahabhain and Deanston Scotch whiskies - recorded revenue of R19.6 billion (£1 billion) for the year with volume sales ahead by 5.9%.

Operating profit was 6.5% ahead at R2.1 billion (£103.6 million).

Revenue from international business was up 7.6% to just over R6 billion (£296 million) with the best growth in South Africa - where sales were 11.8% up - and other sub-Saharan African markets, which were ahead by 11.6%.

International revenue growth from outside Africa was slower, up 3.8% on a decline in volumes of 5.5%.

Distell said this was because of "continued tough trading conditions" in many of the markets in which it operates, though the business benefited from a weaker rand.

The spirits portfolio - which also includes Bisquit Cognac and Amarula - delivered revenue growth of 9.2% though volume was down 4.3%.

The wine portfolio - which includes Nederburg and Drostdy Hof - was down 2.5% in volume but saw revenue rise 5.8%.

Managing director Richard Rushton said: "The risks to top line growth momentum are higher in some markets.

"However, given our ongoing geographic diversification, the progress we have made in optimising our attractive portfolio of strong, differentiated and price- and occasion-diverse brands and our improving routes to market, we are confident in being able to deliver continued growth to our stakeholders."