Subscriber login Close [x]
remember me
You are not logged in.

Stock Spirits faces profit slump after torrid spell in Poland

Published:  21 August, 2015

Market disruption in Poland in the first quarter brought about a slump in revenue and profits for Stock Spirits in the half-year to June 30.

The UK-based company - which operates mainly in Poland, the Czech Republic and Italy - saw pre-tax profit fall from €16.8 million (£12 million) in 2014 to just €200,000 (£143,000).

Revenue fell from €137.7 million (£97.6 million) to €108 million (£77 million).

It said the Polish situation improved in the second quarter and it was investing in NPD, new packaging and premiumisation strategies to turn around its fortunes in the territory.

Chief executive officer Chris Heath said: "The disruption in the supply chain and aggressive competitor pricing in Poland, following the excise tax increase in January 2014, resulted in a very poor first quarter for the group.

"Trading in Poland improved significantly in the second quarter, but not enough to fully offset the poor first quarter.

"All other markets have traded in line with our expectations.

"Having come through a very difficult period, we have put the building blocks in place to ensure that the group is well-placed to capitalise on the opportunities available in the central and eastern European region and the improved trading conditions we experienced in quarter two have continued into the start of quarter three."

The company's brands include Czysta de Luxe and Stock Prestige vodkas and Fernet Stock bitters.