Stock Spirits Profit Doubles On Higher Demand In Poland, Czech Republic
Stock Spirits Group Plc's full-year profit has more than doubled on higher demand for its premium vodka brand in Poland and the Czech Republic, and the company said it was confident of managing any impact of proposed tax hikes in those countries.
Three quarters of the spirit and liquor maker's revenue comes from Poland and the Czech Republic.
In April, the Czech finance ministry put forward a 13% higher tax on spirits and gambling, aiming to boost the country's budget revenue by 1.3 billion crowns in 2020. Poland has proposed higher taxes on alcohol from January 2020.
The central and eastern Europe-focused maker of 1906, Stock Prestige and Vodka No.1 also said on Wednesday it would invest about €25 million to increase distillation capacity in Poland.
"Our planned investment in our distillation capabilities in Poland will deliver future value to the business and deliver margin enhancement as we grow the business further," it said.
The company's debt pile stood at €42.3 million at the end of September, compared to its market value of $487.4 million, following acquisition of two liquor makers in Italy and Czech Republic earlier this year.
Stock Spirits was established in 2008 after the merger of Eckes & Stock and Polmos Lublin.
Its profit for the 12 months ended September 30 came in at €28.3 million, from €13.6 million last year, with volume growing by 8%.
The FTSE small cap firm's shares were up 2.4% in early trading.