12th Mar 2015 08:56
LONDON (Alliance News) - Stock Spirits Group PLC on Thursday posted a higher pretax profit for 2014 as the group managed to bring down its finance costs despite revenue falling on the back of tough trading conditions in the Polish market.
The company, which distributes branded spirits in central and eastern Europe, said its pretax profit for 2014 was EUR49 million, compared to a EUR8.7 million loss last year. The profit was boosted by a big fall in finance costs, down to EUR12.3 million from EUR58.2 million, and by lower exceptional costs, which fell to EUR1.1 million from EUR15.1 million.
Revenue fell to EUR292.7 million from EUR340.5 million, hit hard by the market disruption caused by a 15% excise duty increase in Poland. Stock Spirits said the supply chain disruption for the company continues for now, but it expects this situation to improve over the course of 2015.
The problems in the Polish business were the primary reason for the share price falls Stock Spirits suffered in 2014, which resulted in it being relegated from the FTSE 250 index.
The group said its performance in other markets was robust in the year, with good growth of the Fernet brand and new contracts signed with Beam Suntory in Croatia and Bosnia.
The company said it will pay a EUR0.025 per share final dividend, bringing its total dividend payout for the year to EUR0.0375.
"Whilst 2014 has been a very challenging year for the group following the 15% increase in excise duty in Poland, we have remained faithful to our strategy and achieved several important goals. We have continued to invest in our brands and our production capability and launched a number of successful new products," said Stock Spirits Chief Executive Chris Heath.
"We expect trading conditions in Poland to remain difficult moving into 2015 but expect more normal trading patterns will resume during the course of the year," Heath added.
Shares in Stock Spirits were up 2.6% to 195.75 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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