Stock Spirits warns of ‘extremely weak’ Q1

Eastern and Central European spirits producer Stock Spirits has warned of an “extremely weak” first quarter due to supply chain disruptions in Poland.

Stock Spirits experienced an “extremely weak” first quarter, but anticipates recovery in H2

In a trading statement released before its annual general meeting, the group said despite the reduction of vodka inventories by “key customers” in the country, its full-year results expectation remained unchanged.

“The first quarter was extremely weak, but we have been encouraged by the re-emergence of more normal trading conditions in the six weeks since Easter,” the statement read.

“In Poland, the market rate of decline in vodka consumption reduced slightly to 3.8% in the three months to March, versus 4.3% in 2014. We continued not to chase uneconomic sales and therefore have lost share.”

The group anticipates weak overall half-year results, which it hopes to offset with recovery in H2.

In March this year, the Stock Prestige vodka maker reported a 14% sales dive in 2014 – described as a “difficult year” due to a 15% tax hike in its key market, Poland.

At the time the results were announced, the CEO Chris Heath said that the trading environment in Poland will “remain difficult” in 2015, although he expects stability to return “during the course of the year”.

It was revealed last month that Michael Kennedy, former CEO of Drambuie, had been recruited as MD for Stock Spirits’ Italian and international business.

Stock Spirits will report its H1 results for 2015 on 20 August.