19th May 2015 07:43
LONDON (Alliance News) - Stock Spirits Group PLC on Tuesday maintained its full-year expectations, despite disruptions to its supply chain in Poland continuing in the first quarter of 2015, as all other markets for the group traded in line with expectations.
Stock Spirits, a Central Europe-focused drinks distributor, said the first quarter of the year was "extremely weak" for the business, though more normal trading conditions have emerged in the weeks since Easter.
In Poland, the rate of decline in vodka consumption reduced slightly in the first quarter - to 3.8% from 4.3% a year before - but the group said it has lost market share due to a strategy of eschewing pursuing uneconomic sales. The supply chain disruption in Poland also continued in the first quarter, with some key customers also significant reducing vodka inventories.
As a result, the company expects a weak result for the first half of 2015, but expects a recovery in the second half and full-year results to be in line with its forecasts.
Stock Spirits will publish half-year results on August 20.
Shares in Stock Spirits were down 1.6% to 182.00 pence on Tuesday morning, one of the worst performers in the FTSE All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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