Distell, SA’s largest alcohol producer, will see headline earnings per share rise by as much as 40% for its year to end-June.
The maker of Savanna, Durbanville Hills wine and Bain’s whisky, said revenue grew by 20.8% while volumes were up 17.6%.
The news may be of limited interest to investors as the company is to delist after being bought by Europe’s largest brewer Heineken, though the deal is awaiting competition authority approval.
The share price reflects the value of the Heineken deal and is barely moved after the trading statement.
Even as delisting is imminent, the JSE requires all listed companies to update the market as soon as they are aware that earnings will be at least 20% higher or lower than the comparable period.
In the financial year to end-June, Distell said its headline earnings per share, a main profit measure in SA, would be between R10.01 and R10.70, up from R7.69.
In SA, Distell which also makes the popular 4th Street box wines, reported 47 more trading days due to reduced liquor bans compared with the year that ended June 2021 during which it endured many lockdown alcohol sales bans. Distell’s SA business saw double-digit growth in revenue and volumes even as it faced glass bottle shortages for its best seller Savanna.
The international business grew revenues and volumes by high single-digits, Distell said.
Distell's final public results announcement will take place on August 25.
Its share price closed 0.22% higher at R173 on Friday.
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