US: Currency woes weigh on CEDC in Q1
Central European Distribution Corporation has posted a dip in sales for the first quarter of this year, with net profit turning into a loss for the period.
The US-based company, which operates primarily in Central and Eastern Europe, said yesterday (5 May) that net sales for the three months to the end of March were US$217.9m, compared to $313.6m in the corresponding quarter a year earlier.
A 32% average devaluation of CEDC's primary functional currencies - the Polish Zloty, Russian Ruble and Hungarian Forint - compared to the US dollar from the same period in 2008, was primarily responsible for the sales slide.
On a comparable basis, CEDC saw net profits total $9.8m versus $12.1m a year ago. Net losses on a US GAAP basis, however, were $87.7m compared to a net profit of $18.3m. "The major difference between the US GAAP net income and comparable non-GAAP net income reflects unrealised foreign exchange movements relating to our foreign currency denominated debt," the company noted.
Operating profits reached $20.3m against $25.5m in Q1 2008.
"In light of uncertainties in the global market place and substantial currency movements in the first quarter, as well as high levels of inventory in the market from 31 December 2008 which resulted primarily from year-end excise tax increases in Poland and Russia, we were still able to achieve positive net sales revenues and earnings per share growth assuming constant exchange rates in our primary functional currencies from the same period in 2008," said company president and CEO, William Carey.
"We believe our core underlying business remains solid and we believe we will emerge out of this crisis as a stronger company with fewer competitors."
The company reconfirmed its full year 2009 net sales guidance of between $1.55bn and $1.68bn and its full year comparable fully-diluted earnings per share guidance of between $2.40 and $2.65.
Last month, CEDC said it will acquire a controlling stake in vodka producer Russian Alcohol this year, after agreeing to buy up some of the shares owned by private equity group Lion Capital for US$17.75m.
As Pernod Ricard names a new brand director for its gin brands, a recently published report from just-drinks/IWSR suggests it will not be an easy category from which to extract growth. Ben Cooper repo...
Vodka will be the next drinks category to benefit from India's growing alcohol consumption going forward, according to industry forecasts....
Here you can find the top ten stories published on just-drinks this week....
Diageo and the Nolet family are looking to launch Dutch premium vodka Ketel One into a number of new countries, including Brazil....
Diageo and the Nolet family this week said they are looking to launch Dutch premium vodka Ketel One into a number of new countries, including Brazil. Here we take a look at five key dates in the histo...
United Breweries and United Spirits, both part of The UB Group empire in India, have posted their latest quarterly and half-year results....
Castle Brands Spirits Group, a subsidiary of Castle Brands, has entered into a marketing and distribution agreement covering the Nordic region with Arcus, Norway's largest spirits producer and wholesa...
Ehrmann's Fair vodka...
- Craft spirits shake-out will be just the beginning
- The decline of the flagship beer brand - Comment
- Job cuts not the whole story at AB InBev - Comment
- How Treasury is rewriting the rule book - Comment
- Interview- Veltins export manager Udo Bruns
- Diageo revamps Gordon's gin bottle in UK
- Craft Brew Alliance poised for AB InBev takeover?
- SAB shareholders granted AB InBev vote split
- Pernod deal rescues Corby's FY
- Diageo's Guinness Rye Pale Ale - NPD
- The Next Seven Big Beverage Markets
- Global rum insights - market forecasts, product innovation and consumer trends
- Global RTD insights - market forecasts, product innovation and consumer trends
- Carlsberg AS (CARL B) - Financial and Strategic SWOT Analysis Review
- Adultifying Soft Drinks; Capitalizing on rising adult demand for non-alcoholic beverages