Alcohol ban cost Distell 18.2% profit, 25% in volumes in year to June

DURBAN – The ban on alcohol sales and distribution took its toll on the country’s biggest wine, spirits and ciders maker Distell, felling its profits 18.2 percent and volumes 25 percent in the year to June.

Distell said on Thursday that the alcohol restrictions that formed part of the government’s strategy to curb the spread of Covid-19 reduced the trading year by nearly 20 percent.

The group said it lost approximately 100 million litres in sales volumes and R4.3 billion in revenue. Its excise duty contribution was down by 11.3 percent to R6.3bn.

Distell said that overall revenue fell 14.6 percent to R22.4bn on 22.5 percent lower volumes.

In African markets, outside South Africa, revenue declined 3 percent on lower sales volumes which were down by 14.7 percent, mainly as a result of a 19.1 percent decline in volumes in Botswana, Lesotho, Namibia and eSwatini.