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Stock Spirits Group’s profits slide after IPO
By Amy HopkinsEastern European spirits producer Stock Spirits Group has seen its profits plummet since entering the London stock market last year.
Stock Spirits has announced a dip in its profits for 2013 after the company entered the London stock exchangeFor 2013, the group recorded a profit of €8.9million, compared to €26.2m in 2012, however sales increased 16.4% to €340.5m, compared to €292.4m in 2012.
The fall in profit was attributed to various “exceptional costs”, predominantly those attached to its Initial Public Offering (IPO) before floating on the London stock market.
The UK-headquartered spirits producer and distributor, which operates primarily in Central and Eastern Europe, made the decision to sell a quarter of its shares in a bid to raise £52 million.
“We are pleased with the performance of the group during what has been a very busy period,” said Chris Heath, CEO of Stock Spirits Group.
“We have completed a successful IPO whilst delivering strong performances in all our key markets, and despite challenging economic conditions.”
Heath also noted that the company had undertaken two “strategic initiatives to position business for further growth”, which were: the installation of 20,000 braded refrigerators in stores across Poland, and distribution agreements with Beam Inc in Poland and Diageo in the Czech Republic.
He added that the company had experienced a “successful” recovery from the partial prohibition declared in the Czech Republic at the end of 2012, while still facing challenges from Polish excise duty increases.