Earnings and Revenue Plunge at Stock Spirits Group
Adjusted EBITDA for 2015 decreased by €12.6 million to €53.7 million versus the previous year at Stock Spirits Group, a leading Central and Eastern European branded spirits producer. Revenue also declined from €292.7 million to revenue €262.6 million for the year ended 31 December 2015.
Much of the decrease in adjusted EBITDA occurred during the first quarter due to poor trading in Poland. Spirits Group’s results were also impacted by movements in foreign exchange primarily arising from the translation effect from the Swiss Franc and Sterling. This had the impact of reducing the full year EBITDA by €1.6 million, versus 2014.
In November, the group concluded a refinancing by repaying the previous facility in full, and moving to a revolving credit facility, resulting in a reduction in borrowing costs going forwards, increasing both borrowing flexibility and providing significant headroom.
“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. In other markets, I am very pleased with the results we achieved in 2015 and it reassures me that our commercial strategy remains valid and robust. In all of our markets we achieved profit growth in the second half compared to the same period in 2014,” says Chris Heath, chief executive of Stock Spirits Group.
He adds: “We have recently completed a thorough strategic review of the Group and a detailed ‘root and branch’ review of our operations in Poland. 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.”
