Stock Spirits H1 sales rise as Polish business stabilises

Central and Eastern European drinks group Stock Spirits has reported a 9.7% operating profit increase in the first half of 2018, despite “highly competitive pricing” in the company’s core Polish market.

Stock Spirits expects to “achieve further growth” in the second half of 2018

In the six months ending 30 June 2018, the firm’s operating profit grew to €18 million (US$20.8m), while total revenue increased by 5.3% to €124.1m (US$143.9m).

Total sales volume for the period performed “slightly ahead” at 5.8m nine-litre cases.

The stabilisation of the Polish business helped to deliver revenue and volume share gains despite “highly competitive” pricing in the market.

The firm placed “significant” investment in new product development for its largest brands. In Poland, Stock Spirits re-launched Zołᶏdkowa de Luxe vodka and Lubelska vodka-based liqueur, released a Prestige vodka ‘World Cup’ limited edition and unveiled flavoured line extensions for Lubelska and Saska liqueur. In Czech Republic, the group launched Božkov Republica rum.

In addition, the company signed a distribution deal with Beam Suntory in the Czech Republic, alongside an existing agreement with Diageo, to “significantly strengthen” its Czech whisky range.

Stock Spirits also agreed a distribution deal with Quintessential Brands for Irish whiskey in key markets.

In 2017, the firm moved into the Irish whiskey category with the purchase of a 25% stake in Dublin Liberties Distillery.

Mirek Stachowicz, CEO of Stock Spirits Group, said: “In these six months we have delivered growth in volumes, sales revenue, profit, and margins.

“Despite some challenges in our core markets, and in particular the competitive pricing environment in Poland, we believe that our ongoing focus on investment in our brands, product innovation and premiumisation are working well and we are well positioned to achieve further growth in the second half of the year and beyond.”