Stock Spirits to review company strategy
Stock Spirits is to undertake a “root and branch” review of its corporate strategy, and in particular its business in Poland, following a period of struggling sales.
Price hikes in Poland have had a significant impact on Stock Spirits Group’s sales resultsThe leading Central and Eastern European spirits group saw its half-year sales plummet more than 20% in the six months to 30 June 2015, blamed on continued “market disruption” in its key Polish market.
Stock Spirits said in a statement it plans to update investors about the outcome of the review in March.
“The business is conducting a ‘root and branch’ review of both our business in Poland and our broader corporate strategy,” the statement read.
“We will provide an update on this, as well as our approach to capital allocation, at the time of our full-year results on March 10, 2016.”
The drinks firm said it expects full-year operating profit (EBITDA) to be between the higher end of €50 million and €54 million – a drop from previous predictions of between €60m and €68m.
The company also said: “Group cash flow for the year was strong, resulting in net debt at the 31st December of €57m.”
