Stock Spirits Group PLC AGM Statement (8961F)
May 23 2017 - 1:00AM
UK Regulatory
TIDMSTCK
RNS Number : 8961F
Stock Spirits Group PLC
23 May 2017
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 EUR1.5m 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
EUR3m, 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, o dkowa de
Luxe crystal clear vodka, o dkowa 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 +44 (0) 207 250 1446
Rob Greening stockspirits@powerscourt-group.com
Lisa Kavanagh
------------------------- ------------------------------------
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
EUR261.0m and operating profit of EUR40.1m.
For further information, please visit www.stockspirits.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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