How did Stock Spirits perform in fiscal-2019? – results data

Stock Spirits has closed out its latest fiscal-full-year, posting a low double-digit lift in sales for the 12 months. The UK-headquartered group said earlier today that its sales in the year to the end of September totalled EUR312.4m (US$346.1m). On a constant-currency basis, the top-line came in 10.1% up on the corresponding period a year earlier. The performance builds on the 9.7% rise in the first six months of fiscal-2019. In Poland, Stock's key market where the company leads the vodka category, a healthy macro-economic landscape helped drive a 13% jump in pro-forma sales. Flavoured vodka grew fastest in the country for Stock, although the clear-vodka segment also returned to value growth. Looking forward, however, the company warned of a 10% rise in alcohol excise in Poland, which will take effect from 1 January. "We are taking the actions necessary to manage the change and its consequences, and are confident of our ability to mitigate any impact," Stock said in today's statement. Elsewhere, pro-forma sales in Czech were up 11%, again thanks in-part to positive macro-economic trends. The group noted that its premiumisation strategy in both Czech and Poland has been reaping dividends. Stock augmented its Czech distribution tie-ups with Diageo and Beam Suntory with an increased focus on its own whisky brands in the country last year. As in Poland, Czech is also set to increase excise on spirits at the start of next year, this time by 13%. The proposal is expected to be approved by the Czech authorities in the coming days. A loss of share in both value and volumes in Italy, where pro-forma sales improved by 4%, prompted Stock to take a net EUR13.3m impairment hit. The group said its key focus in the country going forward will be the integration of grappa producer Distillerie Franciacorta, which entered the fold in June. The company also used today's results statement to announce an investment of EUR25m to increase production capacity at its Polish facility in Lublin. The funds will be spent over the next three years. CEO Mirek Stachowicz "We have delivered a year of good growth as our successful strategy of premiumisation continues to make progress. The turnaround of our Polish business is complete ... . We have also strengthened our leadership position in the Czech Republic, taking market share in volume and value. "We continue to assess a range of M&A opportunities following our successful acquisitions this year of Distillerie Franciacorta in Italy and Bartida in the Czech Republic, and are committed to pursuing a strategy of both organic and inorganic growth in order to deliver further shareholder value in future. "We are also pleased to announce today an investment in our distillation capabilities in Poland, which will bring future value to our business through cost reduction." To read Stock Spirits' official first-half results announcement, click here. Why vodka's US woes could soon be drowned out by success elsewhere - Click here for a just-drinks comment