Distell increased its profits due to South African demand for alcoholic beverages. Specifically, the South African beverage maker posted a 36.7% increase in annual profits as consumers bought more wine, ciders and spirits despite cost-of-living pressures.
The company, which will be acquired by Dutch beverage company Heineken, was hit hard by alcohol sales bans in 2020 and 2021, when South Africa imposed confinements to combat the COVID-19 pandemic.
The company said that the sustained increase in global inflation, with resulting increases in input costs, supply chain disruptions and shortages of glass and aluminum cans in its domestic market contributed to a “minimal” decline in its gross profit margins.
“We are working closely with our suppliers to address the supply shortage and expect a gradual improvement in supply over the next 12 to 18 months,” the company said.
Group revenues beat analysts’ consensus forecast, rising 20.8% to US$2.02 billion, on volumes 17.6% higher, significantly ahead of pre-COVID levels.
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