8th Oct 2019 09:03
(Alliance News) - Vodka maker Stock Spirits Group PLC on Tuesday said overall trading in financial 2019 was in line with management expectations due to growth in core Polish and Czech businesses.
Stock Spirits shares were down 0.2% at 229.00 pence each in London.
The central and eastern Europe-focused company said its key Polish business continued to perform well in the year ended September 30 and gained market share despite highly competitive trading conditions. The Czech business outperformed the total spirits market and achieved both volume and value growth during the period, Stock Spirits added.
The Polish and Czech business together deliver approximately three-quarters of Stock Spirits' annual revenue.
Stock Spirits said that it is taking action to offset the proposed 13% excise duty hike on spirits in the Czech Republic. The increased is slated to be implemented from January 1.
"We are implementing a range of necessary actions ahead of this change. There have been no further indications in relation to any such changes in Poland or Italy," the company said. In May, Stock Spirits warned of potential increases in indirect taxation in the Czech Republic, Poland and Italy.
In regards to its tax assessment in Poland, the company said its appeal against the assessment is progressing, and it is likely to be successful. The next hearing for the company's appeal against the assessment in respect of its 2013 corporate income tax return is not expected in 2019.
The spirits and liqueurs maker ended the financial 2019 with net debt of EUR43 million after the acquisition of Distillerie Franciacorta in Italy and Czech Republic spirits business Bartida. The company said it is on track with integrating Distillerie Franciacorta with existing its Italian business.
Stock Spirits is scheduled to release its results for financial 2019 on December 4. In financial 2018, the company recorded revenue of EUR282.4 million and operating profit of EUR48.7 million.
By Tapan Panchal; [email protected]
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