Stock Spirits predicts 2013 European recovery

Stock Spirits Group (SSG) expects market conditions to slowly improve across central Europe this year, as it reports a record profit in its 2012 financial results.

Lubelska vodka-based liqueur is one of Stock Spirits’ market-leading brands

SSG, whose core operations lie in Eastern Europe, recorded almost 7% EBITDA growth to a record €68.8m last year, up from €64.3m in 2011.

The result was despite a slight dip in revenue from €295 to €292.4m, and the challenges presented by the prohibition of spirit sales in the Czech Republic – one of the group’s largest markets – in September. The group also took a step closer to becoming the largest spirits producer in central and Eastern Europe with the aquisition of Slovak company Imperator, and the separate ethanol manufacturing business Novel Ferm near Rostock in Germany.

In fact, SSG claims to have strengthened its leadership position in the country, with an overall off-trade spirits share growth of 1.6%.

Further to growing its market share in the Czech Republic, SSG has grown its foothold in Poland, with an increased overall market share of 36%.

As such, the group believes conditions in central European countries, particularly the Czech Republic and Poland, will strengthen in the year ahead.

“I am delighted that we have been able to deliver another very strong set of results in 2012, continuing an unbroken record of profit growth each year since the formation of the Group.

“Faced with on-going difficult economic conditions, significant input cost increases, and the temporary spirits ban in the Czech Republic, we were well positioned in 2012 to capitalise on the strength of our brands and distribution platform to deliver superior results by taking the lead on market pricing and managing our product and marketing mix to deliver strong margin growth.

“We are particularly pleased to have extended the leading positions for most of our core brands in our key markets, and to have continued with our successful track record of launching new products across the region.”

“We remain confident that the Group is well placed to take advantage of opportunities to grow the business further in 2013 and beyond.”

Stock Spirits is working on growing its successful Lubelska line of vodka-based liqueurs, and expanding its line of Keglevich flavoured vodka, which is launching in the UK this month.