Drinks group Stock Spirits saw full-year revenue increase by 9.1%, boosted by vodka sales in Poland.
Stock Spirits saw its volume sales for the 12 months to 30 September increase by 1.8% and revenue rose by 9.1% to reach €341 million (US$411m). Earnings, before interest, tax, depreciation and amortisation (EBITDA) was €71m (US$86m), an increase of 6.1% over FY2019.
Mirek Stachowicz, chief executive officer, said: “We are pleased to have delivered a resilient performance against the backdrop of a hugely challenging year.
“In H1, we successfully navigated excise tax increases in our largest markets of Poland and the Czech Republic. In H2, we prioritised protecting and supporting our employees, customers, suppliers and the communities around us in the face of the Covid-19 pandemic.”
The group’s results were boosted by its performance in Poland. Revenue for the region increased 15.1% as a result of growing clear and flavoured vodka sales, which delivered 60% of total value growth in the region. Stock Spirits said 30% of its growth also came from the whisky category.
Revenue for the year in Poland was €193.6m (US$233m), up from €171.7m (US$207m) in 2019, and adjusted EBITDA rose to €49.9m (US$60m).
Stock Spirits also posted growth in the Czech Republic, where full-year revenue increased from €81.3m (US$98m) in 2019 to €87.3m (US$105m).
In the region, off-trade sales grew by 11% in value and 5.6% in volume. Rum, vodka, herbal bitters and whisky together accounted for 75% of the group’s volume sales in the Czech Republic.
In Italy, total spirits sales grew by 7.8% in value and 7.9% in volume terms in the off-trade. However, the total market declined by 2.3% in value as a result of on-trade closures due to the Covid-19 pandemic.
Stock Spirits’ other market results cover Slovakia, Croatia and Bosnia & Herzegovina together with its export operations, Baltic Distillery in Germany, and UK corporate office. Revenue for the year for other markets was €29.5m (US$36m), down from €32.5m (US$39) last year.
Stachowicz added: “Our strategy of sourcing and manufacturing nearly all of our products locally ensured that there has been no disruption to our operations. In addition, our longstanding focus on the off-trade served us well during the closure of the on-trade as a result of lockdowns. Our portfolio of brands performed strongly, boosted by consumers opting to buy familiar and trusted local brands during times of uncertainty, as well as by the trend towards staycations in our markets.
“Our strong operational and financial performance has enabled us to continue to invest in our brands and our business, and to return surplus cash to our shareholders in the form of a special dividend.”
Looking ahead, Stachowicz said there is continued uncertainty in the short term, but he is confident about the company’s future.
He said: “While there remains some uncertainty in the short-term outlook, in the longer term we are confident that we will emerge from the pandemic with an even more loyal and engaged consumer base, closer customer and supplier relationships, and a stronger business than ever before. As such, we remain confident in the future prospects of Stock Spirits.”
Read Full Story at source (may require registration)
Author: Owen Bellwood