East Imperial (EISB ), a producer of premium beverages, released a pre-close unaudited trading update for the year ended 31 December 2022, ahead of preliminary results in April 2023. The company reported 15.5% higher revenue year-on-year in 2022 to £3.2m, in line with expectations. Revenues were driven by higher sales in all markets with approximately 230,000 cases sold at greater revenue per unit.
In the US, East Imperial's sales grew 68% thanks to a new distribution agreement and appointment of bottling partner. In APAC, sales were in line with expectations and rising thanks a softening of freight charges and lifting of Covid restrictions in the second half.
In New Zealand, East Imperial reported record sales and "strong performance" in off-trade sales in Q4 22. The company expects growth to accelerate in New Zealand in 2023.
Tony Burt, CEO, commented: "The double-digit revenue growth we experienced over the year is testament to excellent customer demand for our product in key markets as well as the strong operational foundations we have put in place. 2022 was a transformational year for our US business, with the expansion of our distribution network and the appointment of a bottling partner, and I am very excited about the potential for growth in the coming years."
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East Imperial's distribution agreement with Republic National Distributing Company and bottling partnership with The Lion Brewery are having a hugely positive an effect.
Sales in China were also in line with expectations, lower in the first half due to Covid lockdowns, but rebounding in the second and with strong momentum into 2023 as Covid restrictions eased. East Imperial is positioned for continued growth in China following its distribution agreement with Wen Hua Hang Wine Spirits Company signed last summer.
Elsewhere in APAC, East Imperial's distribution agreement with SUTL announced in December should accelerate growth in Vietnam, a growing market for luxury travel. The company also reported record off-trade (off-premise) sales in New Zealand following the launch of its latest product, a Light Tonic Water in the country, now also available in the US.
East Imperial should see continued margin improvement in 2023, particularly in APAC following a softening of freight charges in Q4 22 and gradual lifting of Covid restrictions. The company's distribution agreements signed in 2022 in the US and APAC should expand its customer base further in 2023.
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