AGM Trading Statement
Stock Spirits Group PLC ("Stock Spirits" or the "Company"), a leading owner and producer of premium branded spirits and liqueurs that are principally sold in Central and Eastern Europe, issues a trading update for the period from 1 January 2018 to 22 May 2018, ahead of its AGM today.
Performance so far this year has been satisfactory, and expectations for trading for the full calendar year 2018 remain unchanged, and in line with current market expectations.
In Q1 the vodka market in Poland recorded a slight increase in both value (+1.2%) and volume (+1.1%) versus Q1 last year, driven in part by the earlier timing of Easter this year (i.e. in Q1 2018, as opposed to Q2 in 2017). Growth in the flavoured vodka market more than offset a decline in the clear vodka market. The Polish market remains highly competitive, with significant ongoing price pressure. Stock Spirits continues to monitor and position its pricing accordingly across its product range. The largest volume brand, Żołᶏdkowa de Luxe, was re-launched in April and early indications are encouraging. Stock Poland's market share has continued to steadily improve, with volume market share at the end of March 2018 (26.1% MAT) ahead of that at the end of March 2017 (24.9% MAT) 1.
The overall Czech spirits market continued volume growth (+8.0%) and value growth (+11.3%) during Q1, helped by the earlier timing of Easter. The Czech business has delivered MAT volume share growth from 34.1% (end of March 2017) to 36.2% (end of March 2018), and MAT value share growth from 32.2% to 33.3%2. This has been driven by a combination of: the core brands having been strengthened by the Distribution Brand portfolios of Diageo and Beam-Suntory; the new brand launches of Black Fox and Božkov Republica; and the brands acquired in 2016 (Pražská, Nordic Ice and Dynybyl).
The Company will release interim results on Wednesday 8 August 2018. Following its previously announced decision to move to a 30 September year end, the Company will release 9 month results on Wednesday 5 December 2018. It will also report pro forma and unaudited 12 months results to 30 September 2018, with comparative results for the 12 months to 30 September 2017.
1 Nielsen, total Poland, total off trade, total vodka, to end March 2018.
2 Nielsen, total Czech Republic, total off trade, total spirits, to end March 2018.
Stock Spirits Group:
+44 (0) 1628 648 500
+44 (0) 207 250 1446
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