4th Dec 2019 09:03
(Alliance News) - Stock Spirits PLC said Wednesday it delivered a year of good growth as its successful strategy of premiumisation continues to make progress.
The owner and producer of premium branded spirits and liqueurs that are principally sold in Central and Eastern Europe and Italy, said for the financial year ended September 30 its revenue rose 9.2% to EUR312.4 million from EUR282.4 million in a comparative period a year ago.
The company said its pretax profit rose 24% to EUR38.2 million from EUR30.7 million a year prior.
Stock Spirits said revenue growth reflected its successful growth strategy, with strong performance in Poland and Czech Republic. Also, the company said it delivered its premiumisation target a year ahead of plan. This was to develop a more premium portfolio and have 30% of revenue coming from premium product.
The company increased dividend for the year by 5.1% to 8.94 euro cents from 8.51 cents a year ago.
Stock Spirits has also announced a EUR25 million investment in additional distillation capacity in Poland, to be completed in three years' time.
The company said it is "pleased" with the momentum in its core markets of Poland and the Czech Republic and sees significant scope for further growth across all of the markets.
"While there are challenges in certain areas of our business, notably in managing any impact that might result from the proposed excise tax increases in the Czech Republic and Poland, we remain confident in the strength of our brands, the quality of our people and the viability of our strategy. As a result, we feel well positioned for future success," the company said.
Stock Spirits shares were up 2.8% in London at 193.60 pence each on Wednesday.
By Loreta Juodagalvyte; [email protected]
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