Distell Group Limited. JSE: DST

Distell shares

Background of Distell

  • Distell is an investment holding company and Africa’s largest producer and marketer of wines, spirits, ciders and other alcoholic beverages, employing 5 500 people and recording an annual turnover of R19.6 billion. Distell has a highly diversified portfolio of well-known brands, and a market cap of R35 billion.

  • The group builds its portfolio of brands through subsidiaries, joint ventures, offices and agents on all of the world’s continents. The group’s history can be traced back to a merger between Stellenbosch Farmers’ Winery and Distillers Corporation in 2000, which was made possible as both firms had similar shareholding structures. This allowed for no diluting effect on lead shareholders’ interests.

  • Distell shares subsequently began trading on the Johannesburg Stock Exchange(JSE) in 2001 and are for sale under the Consumer Goods sector.

Distell Shares Growth Driver

  • 2015 saw Distell investing heavily into a new corporate strategy which focused on building capability and capacity to respond to increasing competition and economic volatility.

  • Distell had a strong performance, increasing revenue by 11.2% to R12.2 billion, headline earnings by 17.8% and sales volumes by 7.7%. This was largely due to a record festive season trade for the company, with all core beverage categories delivering impressive growth. The group also achieved good gains from international markets as a result of the weaker rand. In particular, gains in some African, European and Asian markets offset the effects of weak demand from the UK, Russia, China and Latin America.

  • Enhanced market penetration, product diversification and improvements to customer service were a big factor in raising volumes in South Africa by 13.3%, further strengthening Distell’s position in its largest market. Distell’s board has forecast that the macroeconomic environment will continue to be challenging in the short-term future, with the group’s key markets experiencing volatile trading conditions.

  • Despite these headwinds, the business is continuing to buy heavily into an expansion into the African continent and beyond. Geographic diversification, a differentiated brand portfolio and varying price points make the business well-positioned to pursue even more growth and boost Distell share price. Distell has a goal of doubling the size of its business by 2020.

Distell Investor Tip

  • Distell has proven to be a global powerhouse with the capital and human resources to continue on its rapid growth trajectory. The business continues to yield good profits and has identified a number of opportunities to buy into at the mainstream and affordable end of the market, as well as the premium price segment.

  • Distell shares have always been a sound buy for investors, yielding solid returns and consistent dividends. At around R157 in mid 2016, the live online JSE stocks chart shows that Distell share price has remained fairly constant over the past year or so, after a strong rise in previous years. This is a reflection of the economic downturn. Upside growth is expected to continue once these conditions improve, making Distell shares a good purchase for long-term investors.

Distell Major Shareholders

Remgro, Capevin Investments, SABMiller.

  • Sector

    Consumer Staples

  • Industry

    Consumer Products

  • Sub industry

    Beverages

How to buy Distell Group Shares

  • Distell : How to buy Distell Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Distell Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Distell Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Distell Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Distell Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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