22 May 2018 07:00
Stock Spirits Group PLC
AGM trading statement
22 May 2018
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 2018 to 22 May 2018, ahead of its AGM today.
Performance so far this year has been satisfactory, and expectations for trading for the full calendar year 2018 remain unchanged, and in line with current market expectations.
Poland
In Q1 the vodka market in Poland recorded a slight increase in both value (+1.2%) and volume (+1.1%) versus Q1 last year, driven in part by the earlier timing of Easter this year (i.e. in Q1 2018, as opposed to Q2 in 2017). Growth in the flavoured vodka market more than offset a decline in the clear vodka market. The Polish market remains highly competitive, with significant ongoing price pressure. Stock Spirits continues to monitor and position its pricing accordingly across its product range. The largest volume brand, Żołᶏdkowa de Luxe, was re-launched in April and early indications are encouraging. Stock Poland's market share has continued to steadily improve, with volume market share at the end of March 2018 (26.1% MAT) ahead of that at the end of March 2017 (24.9% MAT) 1.
Czech Republic
The overall Czech spirits market continued volume growth (+8.0%) and value growth (+11.3%) during Q1, helped by the earlier timing of Easter. The Czech business has delivered MAT volume share growth from 34.1% (end of March 2017) to 36.2% (end of March 2018), and MAT value share growth from 32.2% to 33.3%2. This has been driven by a combination of: the core brands having been strengthened by the Distribution Brand portfolios of Diageo and Beam-Suntory; the new brand launches of Black Fox and Božkov Republica; and the brands acquired in 2016 (Pražská, Nordic Ice and Dynybyl).
The Company will release interim results on Wednesday 8 August 2018. Following its previously announced decision to move to a 30 September year end, the Company will release 9 month results on Wednesday 5 December 2018. It will also report pro forma and unaudited 12 months results to 30 September 2018, with comparative results for the 12 months to 30 September 2017.
Sources:
1 Nielsen, total Poland, total off trade, total vodka, to end March 2018.
2 Nielsen, total Czech Republic, total off trade, total spirits, to end March 2018.
For further information:
Stock Spirits Group: Paul Bal
| +44 (0) 1628 648 500 |
Powerscourt Rob Greening Lisa Kavanagh Sofie Brewis
| +44 (0) 207 250 1446 stockspirits@powerscourt-group.com
|
Investors can also address any query to investorqueries@stockspirits.com.
About Stock Spirits Group
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 production facilities in Poland, the Czech Republic and Germany, and its core brands include products made to long-established recipes such as Stock 84 brandy, Fernet Stock bitters and Limoncè, as well as more recent creations like Stock Prestige and Żołᶏdkowa de Luxe vodkas.
Stock is listed on the main market of the London Stock Exchange. For the year ended 31 December 2017 it delivered total revenue of €274.6 million and operating profit before exceptional expenses of €44.8m.
For further information, please visit www.stockspirits.com