News

US/POLAND: CEDC swings to H1 losses

Most popular

Coca-Cola alcohol launch a statement of intent

Coca-Cola reaps rewards of CEO's innovation bet

Interview - Beam Suntory CEO Albert Baladi

How to reach Gen Z in the coronavirus era - focus

Why are spirits brands still getting women wrong?

MORE
  • Charges send drinks group into the red
  • Russia drives solid H1 sales rise
  • Group plans to cut debt and costs

Higher charges caused Central European Distribution Corp to drop into the red for the first half of 2010, despite a strong rise in sales.

//i4.aroq.com/1/cedc.jpg

Central European Distribution Corp (CEDC) reported net losses from continuing operations of US$58.5m for the six months to the end of June, compared to profits of $120.4m in the first half of 2009. Operating profits also plunged, to $66.5m from $248m a year earlier, said the firm yesterday (5 August).

The collapse in earnings was due to a one-off gain in the first half of 2009 relating to the drinks distributor's acquisition of Russian Alcohol Group, said CEDC. It also reported higher non-operating charges in the first six months of 2010. 

While earnings suffered, the group reported a strong rise in net sales for the period.

Sales jumped to $325.4m for the six months, against $246.6m a year earlier. However, the firm reported a marked slowdown in the second quarter, when sales slipped to $175.6m from $175.9m in the second quarter of 2009.

Russian vodka sales drove growth during the half-year, while the group's vodka volumes in Poland fell by 12% in the second quarter.

CEDC chief executive and president William Carey said: "Management is extremely focused on improving the volume numbers in Poland and with a major launch of a new mainstream/subpremium vodka brand planned for the fourth quarter of this year and improved execution; we believe we are on track to deliver increased top line growth and a continued improvement in our operating profit margins."

Chief financial officer and vice-president Chris Biedermann added: "We have continued to move forward in our objective of de-levering our balance sheet with continued improvement of our net debt to EBITDA ratio. Going forward, we expect to be further de-levering with the proceeds from the sale of our Polish Wholesale business applied primarily to debt reduction."

Earlier this week, CEDC announced that it had completed the sale of its Polish drinks distribution arm to wholesale distributor Eurocash for PLN400m (US$132.7m).

For the full results announcement, click here.


Related Content

How did Campari perform in H1 2019? - results data

How did Campari perform in H1 2019? - results data...

Diageo takes US$1.3bn write-down after

Diageo takes US$1.3bn write-down after "year of two halves" - results...

How did Remy Cointreau perform in H1 2020? - results data

How did Remy Cointreau perform in H1 2020? - results data...

How did Lucas Bols perform in H1 fiscal-2020? - results data

How did Lucas Bols perform in H1 fiscal-2020? - results data...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?