US: CEDC details targets for 2007
Central European Distribution Corporation has set out its stall for 2007.
The company, which is based in the US but is Poland's largest vodka group, yesterday (7 March) forecast a 15% rise in full-year revenue to between $1.05bn and $1.10bn.
"Our continued commitment to grow sales of our own higher margin products, coupled with the rapidly expanding Central European GDP are the key drivers of our projected strong organic sales growth," said company CEO William Carey.
Carey said that GDP was expected to rise by 4-5% this year in Central Europe. As well as its stronghold in Poland, CEDC made its first investment in Hungary last year with the acquisition of the local Bols business.
Carey also noted that CEDC is looking to acquire distributors in Poland that have net revenue of around $115m in 2007.
"Although our projected 2007 earnings are impacted by higher spirit pricing as compared to 2006, we are continuing to look for ways to improve our raw spirit pricing with the first step being taken in mid-2007 to rectify our own spirit. Our aim is to be the leader in the Polish market with the lowest cost of goods by 2009."
"We are continuing to show solid cash flow generation through the synergies in our business which gives us the opportunity to be selective in our approach in expanding our business model in Poland and continued international expansion."
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