23 May 2017 07:00
Stock Spirits Group PLC
AGM trading statement
23 May 2017: Stock Spirits Group PLC ("Stock Spirits" or the "Company"), a leading owner and producer of premium branded spirits and liqueurs that are principally sold in Central and Eastern Europe, issues a trading update for the period from 1 January 2017 to 23 May 2017 ahead of its AGM today.
Performance so far this year has been satisfactory and expectations for trading for the full year remain unchanged and in line with current market expectations. In Q1 the vodka market in Poland recorded a slight decline in both value (-1.0%*) and volume (-1.5%*) versus Q1 last year, driven in part by the timing of Easter being later in the calendar this year (i.e. Q2 in 2017 as opposed to Q1 in 2016). Growth in the flavoured vodka market was negated by a decline in the clear vodka market.
The Polish market remains highly competitive, with significant ongoing price pressure. Stock Spirits has continued to invest in pricing across its product range, and its market share has stabilised. The Company's volume market share at the end of March (25.2% MAT*) was broadly at the same level as at the end of December 2016 (25.3% MAT*).
As stated in the full year results announcement in March, the Company has continued to implement a wide range of cost savings with commercial restructuring already undertaken, in January 2017, in Italy and the UK. The Company has now restructured the Group Legal and Operations functions, with activity being transferred and integrated into the local markets. Whilst no savings are expected in 2017 from these changes, this is expected to result in savings of €1.5m per annum from the beginning of 2018. These recent changes, as well as the closure of the Swiss office last year, brings total savings in corporate costs since December 2015 to €3m, representing a 25% reduction in Head Office and local market support costs. All savings are being reinvested in the core Polish business.
During the period, the Company signed a new contract with Beam Suntory for the distribution of their brands in Slovakia, including Jim Beam, Courvoisier, and Maker's Mark. In the UK, it announced a new partnership with Distell for it to distribute a range of Stock Spirits' brands, including Amundsen Expedition Vodka, Żołądkowa de Luxe crystal clear vodka, Żołądkowa Gorzka, Lubelska, Stock XO brandy and Limoncè. Other developments included the commencement of the distribution of the ultra-premium Beluga vodka brand in Croatia and Bosnia, and the rebranding of the Company's Slovakian business to Stock Slovensko s.r.o. as part of the wider strategy of unifying Stock Spirits' corporate identity.
The Company will release interim results on Wednesday 9 August 2017.
*Nielsen data
For further information:
Stock Spirits: | +44 (0) 1628 648 500 |
Mirek Stachowicz, Chief Executive Officer Lesley Jackson, Chief Financial Officer | |
Powerscourt Rob Greening Lisa Kavanagh
| +44 (0) 207 250 1446 stockspirits@powerscourt-group.com
|
Investor queries should be sent to: investorqueries@stockspirits.com
About Stock Spirits
Stock Spirits is one of Central and Eastern Europe's leading branded spirits and liqueurs businesses, and offers a portfolio of products that are rooted in local and regional heritage. With core operations in Poland, the Czech Republic, Slovakia, Italy, Croatia and Bosnia & Herzegovina, Stock also exports to more than 40 other countries worldwide. Global sales volumes currently total over 100 million litres per year.
Stock has state of the art production facilities in Poland and the Czech Republic, and its core brands include products made to long-established recipes such as Stock 84 brandy, Fernet Stock bitters and Limonce, as well as more recent creations like Stock Prestige and Zoladkowa de Luxe vodkas.
Stock is listed on the main market of the London Stock Exchange. For the year ended 31 December 2016 it delivered total revenue of €261.0m and operating profit of €40.1m.
For further information, please visit www.stockspirits.com