Stock Spirits profits to drop by up to €10mBy Amy Hopkins
Central European spirits producer Stock Spirits has warned its profits will sit at the “lower end” of its revised estimation following continued difficulties in Poland.
In November last year, the Stock Prestige vodka maker warned investors it may miss its full-year profit forecast due to duty increases in Poland – its largest market – and “aggressive competitor pricing”.
The group, which is the largest spirits producer in Central Europe, estimated its full year results could be between €5m and €10m below expectations.
A trading statement released this morning claims that profits will now “conclude around the lower end of the range” previously outlined, as volumes dropped 4.4% in the year to November 2014.
Stock Spirits’ sales have suffered in Poland as its supply chain has been disrupted by duty increases. However the group claimed all other markets remained in line with expectations.
“Despite continued aggressive competitor activity in Poland, Stock Spirits Group has maintained its value share in the market but has seen a small decline in volume market share,” a statement from the company read.
In January this year, Stock Spirits warned the Polish government’s decision to increase excise duty on strong alcohol by 15% would harm its sales figures.
The group saw a huge profit decline in its full-year financial results for 2013, from €26m to €8.9m, due to the “exceptional costs”, predominantly those attached to its Initial Public Offering (IPO) before floating on the London stock market.
Stock Spirits’ full-year results for 2014 will be released on 12 March.