• Full year net profits down 46% to EUR19.4m (US$21.3m)
  • Sales in the 12 months to the end of December fall 10% to EUR262.7m
  • Operating profits tumble 22% to EUR41.7m
Poland continues to hamper  performance for Stock Spirits

Poland continues to hamper performance for Stock Spirits

Disruption in the Polish market continued to hamper Stock Spirits' performance, as sales and profits declined in the full year. 

The UK-based company, which operates in Central & Eastern Europe, said today that net profits in the 12 months to the end of December were down 46% to EUR19.4m (US$21m), while sales fell 10% to EUR262.7m. This year's performance was partly affected by a strong 2014, in which full-year net profits lifted 302% to EUR35.8m because of Stock's IPO in October 2013.

The company issued a full-year profit warning last November, flagging problems in the Polish market. Today, Stock said its market share in Poland declined from 38.1% to 30.9% in the year. Stock has been hit hard in the country by the introduction of a 15% rise in excise duty on strong alcohol at the start of 2014.

Company CEO Chris Heath said: "2015 saw another year of disruption in the Polish market and I am personally very disappointed that we had to issue revised profit guidance in November 2015. Our team in Poland have worked incredibly hard to put in place the necessary building blocks to return the business to growth and I acknowledge their hard work and commitment during this difficult period."

Heath said he was pleased with the company's performance in other markets. The group saw its market share value increase in Czech Republic. Stock also launched 43 new products, including new flavours of Fernet and Bozkov as well as a premium vodka, called Amundsen Expedition. 

According to the CEO, Stock has completed its "root and branch" review of Poland as well as a strategy review of the group, announced in January. 

"Whilst both reviews have reaffirmed the principal elements of our strategic goals, they have also identified a number of areas where we need to adapt our strategy and actions, to reflect changes in the Polish competitive environment and the ongoing difficulties in making meaningful acquisitions in CEE to broaden our geographic footprint, " he said. 

The company's share price was down 3.2% at 10:07GMT

To read the official results statement, click here