Stock Spirits profits plummet as Poland bites

Stock Spirits has said it remains “on track” to meet its full-year expectations despite a decline in profits for the first half of 2014.

Stock Spirits reported a 10% decline in revenue for the first half of 2014

For the first six months up to 30 June this year, the central and Eastern European spirits producer reported a 10% drop in revenue to €137.7 million from €153.1 million the previous year. Operating profit before exceptional costs fell 23% to €23.2 million.

The company attributed the declines to the impact of a 15% increase in Polish excise duties on strong alcohol that came into effect in January this year and adverse foreign exchange movements in the Czech Republic.

Total volume fell to 6.8 million nine-litre cases from 7.8 million in 2013, also resultant of Polish excise duty hikes.

Chris Heath, CEO of Stock Spirits Group, said: “The Group’s results for the first half of the year 2014 are in line with our internal targets and we are on track to meet our expectations for the full year.

“This solid performance has been delivered despite the challenge posed by the January 2014 excise duty increase in our largest market, Poland.

“We have continued to grow our share of the key profit pools in Poland and have successfully launched a number of exciting new products in all of our core markets.

“The Group is well placed to capitalise on the opportunities available in the Central and Eastern European region and we continue to view the future with confidence.”

Stock Spirits also announced a new distribution agreement with Beam Suntory in Croatia with the aim of “increasingly premiumising” its portfolio in core markets.

The firm also stated a maiden interim dividend of €0.0125 per ordinary share to shareholders.