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Altia’s sales drop in ‘stable’ H1
Finnish drinks group Altia saw its net sales fall by 2.4% in the first half of 2018 due to “unfavourable currency development” in Finland.
Altia’s O.P. Anderson aquavit distillery opened last year in Sundsvall, Sweden
Altia, which owns brands including Koskenkorva vodka and Renault Cognac, reported a net sales total of €160 million (US$183.4m).
The company’s core Nordic brands witnessed “stable” growth, however spirits declined by -2.4% to €57m (US$65.3m) due to “generally lower volumes in the retail monopoly in Finland”.
The firm said it would continue to build distribution in Asia for Cognac brand Larsen and in the US for Koskenkorva Vodka and O.P. Anderson aquavit.
Exports of Koskenkorva vodka to Russia are also “progressing well”.
Pekka Tennilä, Altia CEO, said: “We have had a financially stable first half of 2018. Our profitability improved in comparison to the previous year despite a demanding operating environment with several external factors affecting Altia’s business, such as the continued unfavourable currency development as well as cost pressures on key raw materials.”
Altia also recently entered a distribution deal with Swedish distillery Hernö, distributing the company’s gin portfolio in the Baltic region and travel retail.
“The addition of one of the most aspirational gin brands in the world, as well as premium craft gins to our offering is the right step in developing our offering and partner business,” said Tennilä.
“Following this and the addition of the Garcia Carrion portfolio, we have a considerably stronger portfolio in Sweden which will help us to mitigate the unfavourable currency development.”
Looking ahead, the company said: “The uncertainty in the eurozone and changes in customers’ buying behaviour are continuing. There is still significant uncertainty related to the development of consumer demand. Raw material prices and currencies are expected to remain volatile.”
In the company’s 2017 full-year results, Altia confirmed it had completed an initial public offering (IPO) at the end of March.