Business
Half-yearly report
Half-yearly report.
About this update from Distil Plc
[{"type":"text","content":"\n \n\n\n\n\nBlavod Wines and Spirits plc (\"the Company\")\n\n26 November 2010\n\nInterim Results for the six months ended 30 September 2010.\n\nBlavod Wines and Spirits plc (the \"Company\"), the owner of the Blavod Black\nVodka brand, and wines and spirits distributor, announces its unaudited interim\nresults for the six months ending 30 September this year.\n\nTrading\n\nGross sales at £3.98 million (2009: £4.0 million) and gross margin at £763,000\n(2009: £775,000) were broadly unchanged from last year. Spending behind the\nbrands and overhead charges were slightly increased, leading to EBITDA of\n£49,000 (2009: £91,000) and a loss of £12,000 against a profit of £45,000 last\nyear.\n\nThe measures announced at the beginning of the financial year to regain\ndistribution, improve margins and reduce costs have begun to take effect. The\nCompany has experienced year on year double digit growth in case sales of its\nown Brands and Blavod in its new packaging is back in a major supermarket chain.\nOn the other hand, price increases have led to a major agency brand losing\ndistribution in one large account.\n\nAs expected, volumes and margins of Cockspur rum fell away sharply following the\nannouncement that this contract was to be ended, resulting in a much reduced\ncontribution, even after compensation had been received.\n\nFor the second half of the year, export orders are strong; margins have now been\nimproved across all major brands; overhead levels have been reduced and are\nforecast to be 7% lower in the second half than in the first; the new packaging\nof Blavod has reached retail shelves and is beginning to be exported to a\nfavourable reception and the cash position of the Company is satisfactory with\nfactoring facilities in place.\n\nLonger term, we will build on our experience in the dynamic rum segment, in\nwhich we more than doubled Cockspur sales over 3 years, by introducing our own\nbrand of rum in the new year and we plan to add a small number of additional\nbrands to the portfolio.\n\nUnfortunately we expect the Company's involvement in wine will decline\nsignificantly in 2011/12 as Domaines Baron de Rothschild (DBR) have decided to\nconsolidate their activities within other Rothschild entities.\n\nOutlook\n\nWhile export is now improving strongly, the UK market remains uncertain for all\nour brands, bo...