Distil (LSE:DIS) posted a challenging third quarter to 31 March 2026, with reported revenue falling 26% year on year to £173,000 and distributor volumes down 39%. The weaker top-line performance came despite strong underlying consumer demand, with retail sell-out of the company’s flagship RedLeg brand rising 36% year on year across major UK grocery channels, supported by aggressive promotional activity and the introduction of refreshed packaging.
The company said the divergence between strong consumer sales and weaker reported revenues reflects elevated distributor stock levels built ahead of the Christmas period in the previous quarter, alongside a broader move across the supply chain toward leaner inventory positions. While UK distributor activity softened, export revenues increased from a small base, and the group achieved several strategic milestones during the quarter.
These included securing US regulatory approval for Blavod, landing a key on-trade listing for Blackwoods with Scottish bar group Buzzworks, and continuing progress toward the opening of the Blackwoods Brand Home. Management noted that inflationary pressures and higher UK alcohol duty continue to weigh on the hospitality sector, creating ongoing headwinds for near-term trading.
Distil said its strategic review remains ongoing, alongside cost-control initiatives aimed at maximising shareholder value and improving the group’s financial resilience. The company believes recent consumer momentum, particularly behind RedLeg, provides a platform for longer-term recovery once inventory dynamics normalise.
From a market perspective, Distil’s outlook remains constrained by sustained losses and ongoing cash burn, with technical indicators signalling bearish sentiment as the share price trades below key moving averages and momentum indicators remain negative. While recent corporate developments and funding support offer some strategic encouragement, these positives have yet to outweigh current profitability and cash flow risks. Valuation remains pressured by loss-making operations and the absence of a dividend.
More about Distil plc
Distil plc is a premium drinks group listed on AIM, with a portfolio that includes RedLeg Spiced Rum, Blackwoods Gin and Vodka, and Blavod Black Vodka. The company sells into UK grocery and on-trade channels as well as selected export markets, and is investing in brand refreshes, new distribution arrangements and the development of the Blackwoods Brand Home as part of its longer-term brand-building strategy.
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