Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Stock Spirits shares fizz higher after strong first half

Stock Spirits delivered a “creditable performance in the challenging trading conditions across its core markets”, Numis analysts said
Amundsen vodka from Poland
The stabilisation of Stock Spirit's Polish business helped to deliver strong growth despite competitive industry pricing

Stock Spirits Group PLC (LON:STCK) shares rose by more than 2% on Wednesday after its first-half results beat expectations with volumes, revenue, profit and margins all growing well during the period.

The central and eastern European-branded spirits producer reported a 9.7% rise in operating profit to €18mln on revenue up 5.3% to €124.1mln in the six months to the end of June 2018.

READ: Stock Spirits reminds us Poles still like vodka

The company said the stabilisation of its Polish business had helped to deliver revenue and volume growth despite highly competitive industry pricing.

During the period, Stock Spirits invested in a range of new products, including the re-launch of Zołᶏdkowa de Luxe vodka. It also released a Prestige ‘World Cup’ limited edition vodka and Božkov Republica rum in the Czech Republic.

“Despite some challenges in our core markets, and in particular the competitive pricing environment in Poland, we believe that our ongoing focus on investment in our brands, product innovation and premiumisation are working well and we are well positioned to achieve further growth in the second half of the year and beyond,” said Mirek Stachowicz, Stock Spirits Group’s CEO said in the results statement.

In a note to clients, analysts at Numis Securities said Stock Spirits delivered a “creditable performance in the challenging trading conditions across its core markets”.

They added that the performance in Poland, in particular, should reassure investors that it can achieve profitable growth despite the oppressive pricing environment.

View full STCK profile View Profile

Stock Spirits Group Timeline

April 14 2016

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use