20th Jan 2015 07:36
LONDON (Alliance News) - Stock Spirits Group PLC Tuesday confirmed its results for 2014 will miss expectations, after "aggressive" competitive activity experienced in the third quarter continued into the final quarter, while it also suffered a small decline in volume market share.
Back in November, the company issued a profit warned stating that third-quarter revenue growth had fallen short of expectations after it was hit by aggressive pricing by competitors and heavy promotional activity in the trade market in the latter half of the quarter, and its full-year results could miss expectations as a result.
In a statement Tuesday, the branded spirits producer in central Europe said disruptions in its supply chain resulting from a duty increase in Poland continued in the fourth quarter, and confirmed it will miss earnings expectations for the full year.
"Despite continued aggressive competitor activity in Poland, Stock Spirits Group has maintained its value share in the market but has seen a small decline in volume market share. As a result of these factors we expect our full-year results to conclude around the lower end of the range outlined in our November trading statement," the company said in its trading update Tuesday.
The company said that the total market data, according to Nielson, indicates that consumer volume trends slightly deteriorated in October and November in Poland, giving a year to date declined of 4.4% at the end of November. All other markets remain in line with expectations, it said.
Stock Spirits said it will release its full-year 2014 results on March 12.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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