Stock Spirits, the biggest vodka maker in Poland and the Czech Republic whose brands include high end Czysta de Luxe, warned that profits may not meet analysts’ forecasts this year.
The FTSE 250-listed company, which distills one in every three bottles of vodka sold in Poland, has laid the blame on a 15 per cent hike in excise duties on spirits in Poland and aggressive pricing by competitors during the third quarter, which is continuing into the final three months of the year.
It's reported that Stock Spirits lost more than a fifth of its value in morning trading earlier today. In a statement the company said: "[In Poland] consumers appear to have largely accepted the price rises and volume trends have continued at the same level we saw in the first half of the year, ie a decline of approximately 3.6 per cent year to date to the end of August which we believe has continued during the rest of the quarter.”
It went to add that that it's experienced very aggressive competitor pricing and promotional activity to secure distribution into the trade customers.
"This has resulted in considerable pressure on margins and... we have not yet been able to achieve the growth in revenues expected."