14th Oct 2020 10:21
(Alliance News) -Â Stock Spirits Group PLC on Wednesday said trading in its recently ended financial year was ahead of expectations.
Shares in Stock Spirits were up 8.0% at 243.00 pence in London on Wednesday.
The vodka and brandy maker said the hit from Covid-19 in the second half of the financial year ended September 30 was "less than initially anticipated". A strong off-trade performance was driven by restrictions in the on-trade channel - being bars and restaurants. Additionally, lockdowns were relaxed earlier than the company's "prudent planning assumptions", and its brands benefiting from staycations.
Overall trading for the year was ahead of expectations, it said.
Stock Spirits, which makes the 1906 vodka and Stock 84 brandy brands, said it was pleased with the "strong" performance its of Polish and Czech businesses, both of which achieved volume and value growth.
The firm noted that the Polish government has decided to apply additional tax on "small format" pack sizes of alcohol - being 300 millilitres or smaller - from the start of 2021. It is too early to accurately quantify the likely impact this legislation could have on the Polish business, Stock Spirits said.
"This decision had been debated since December 2019, and we have in hand a range of potential commercial and operational actions to mitigate the possible impact and indeed take advantage of opportunities that this change could present," the company noted.
By Lucy Heming;Â [email protected]
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