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Distil to double marketing spend, expects revenue surge
8th Jul 2020 09:26
(Sharecast News) - Drinksmaker Distil will more than double its marketing spend over the next few months ahead of an anticipated surge in revenues.
Distil, which saw revenues improve 21% in the first quarter of 2020, will increase its marketing investment by 100-120% in the six months ending September on the back of an expected 75-85% jump in revenues and an operating profit of somewhere between £50m and £70m.
First-quarter volumes were flat year-on-year, however, this was offset by an increase in domestic retail sales both in-store and online.
While the AIM-listed group said it was "currently unable to provide full-year guidance" due to uncertainties surrounding the Covid-19 pandemic, it highlighted that it had seen a "significant increase in demand" for its products at the consumer level during lockdown.
However, Distill added: "Naturally, we remain cautious due to the risk of further lockdowns and all associated disruption."
As of 0925 BST, Distil shares were up 17.27% at 1.29p.
Distil, which saw revenues improve 21% in the first quarter of 2020, will increase its marketing investment by 100-120% in the six months ending September on the back of an expected 75-85% jump in revenues and an operating profit of somewhere between £50m and £70m.
First-quarter volumes were flat year-on-year, however, this was offset by an increase in domestic retail sales both in-store and online.
While the AIM-listed group said it was "currently unable to provide full-year guidance" due to uncertainties surrounding the Covid-19 pandemic, it highlighted that it had seen a "significant increase in demand" for its products at the consumer level during lockdown.
However, Distill added: "Naturally, we remain cautious due to the risk of further lockdowns and all associated disruption."
As of 0925 BST, Distil shares were up 17.27% at 1.29p.