Stock Spirits interim profit fizzes higher as Polish business stabilises

Stock Spirits posted a rise in first-half profit on Wednesday as revenue grew and the company's Polish business stabilised.

In the six months to 30 June, profit after tax increased 8.6% to €12.7m, while total revenue was up 5.3% to €124.1m.

Earnings before interest, taxes, depreciation and amortisation increased 6.2% to €23.4m, while operating profit in the period was 9.7% higher at €18m and the interim dividend was lifted 5% to €2.50 a share.

The owner and producer of premium branded spirits and liqueurs that are principally sold in Central and Eastern Europe said its Polish business has now stabilised and is slowly moving into growth, delivering revenue and volume share gain even as pricing remains highly competitive.

Meanwhile, the Czech business saw its top line grow, but the market there has been hit by certain dynamics in the trade channel that have tempered its profit growth. Italy remains challenging, but the company said it is committed to a turnaround in its performance, which it reckons will provide a better foundation for building a business of scale.

All other markets, which include Slovakia, Bosnia & Herzegovina and Croatia together, have performed ahead of the group's expectations.

Chief executive officer Mirek Stachowicz said: "In these six months we have delivered growth in volumes, sales revenue, profit, and margins. Despite some challenges in our core markets, and in particular the competitive pricing environment in Poland, we believe that our ongoing focus on investment in our brands, product innovation and premiumisation are working well and we are well positioned to achieve further growth in the second half of the year and beyond."

At 1544 BST, the shares were up 2.2% to 212p.