Stock Spirits shoots higher after strong first quarter

Under pressure from a major shareholder to shake up its performance, Stock Spirits has served up a strong measure of its first-quarter trading.

The vodka and schnapps maker said it broke back into the black, with an operating profit of €6.3m on total revenue up 29% €55.3m in the three months to 31 March.

Net debt was cut by €13.6m to €43.6m since the year end.

Last week, 10% shareholder Luis Amaral, the Portuguese cash-and-carry tycoon, demanded a reshuffle of a board that he said had "run out of ideas", citing a loss of market share in Poland, high costs and declining sales.

Stock Spirits said it had decided to move its annual shareholder meeting to 23 May "in order to respond fully" to Amaral's statements and requisitions.

Chief executive Chris Heath, who Amaral wants replaced, said: "The positive momentum we saw in the second half of last year has continued and we have seen a strong start to 2016, with volume, sales revenue and EBITDA growth."

Heath was especially pleased by a return to profit in the quarter in Poland, where market share crept up to 27.2% from 27.0% in December, saying this showed the changes he had put in place in January last year and following the 'root and branch' review this year were "clearly delivering results".