Stock Spirits Group PLC (LON: STCK) have seen their shares rally on Wednesday morning following a positive update to shareholders.
Stock Spirits Group is a drinks business operating in Poland, the Czech Republic, Italy, Slovenia and Croatia. It is listed on the London Stock Exchange and Prague Stock Exchange.
Shares in Stock Spirits rallied 6.69% to 201p on Wednesday morning. 4/12/19 10:33BST.
The firm updated shareholders by saying it had delivered a year of good growth as its successful strategy of premiumisation continues to make progress.
Stock Spirits said said for the financial year ended September 30 its revenue rose 9.2% to €312.4 million from €282.4 million in a comparative period a year ago.
Another impressive figure which caught shareholder interest was that pretax profit had risen 24% from €282.4 million to €312.4 million.
Stock Spirits said revenue growth reflected its successful growth strategy, with strong performance in Poland and Czech Republic. Also, the company said it delivered its premiumisation target a year ahead of plan. This was to develop a more premium portfolio and have 30% of revenue coming from premium product.
The company increased its annual dividend by 5.1% which would have put the icing on the cake for shareholders.
The dividend saw a 5.1% rise from €8.51 a year ago to €8.94, which is certainly impressive when you look at the global market state.
The company said it is “pleased” with the momentum in its core markets of Poland and the Czech Republic and sees significant scope for further growth across all of the markets.
“While there are challenges in certain areas of our business, notably in managing any impact that might result from the proposed excise tax increases in the Czech Republic and Poland, we remain confident in the strength of our brands, the quality of our people and the viability of our strategy. As a result, we feel well positioned for future success,” the company said.
Shareholders of Stock Spirits will be impressed, and the firm has seen good progress where competitors such as Fever-Tree (LON:FEVR) saw its shares crash following a modest update in November.
Looking at the beverage industry however, there is no surprise that Stock Spirits have seen their shares rise with the update.
Pub chains, who Stock Spirits supply in countries have seen their shares rise, this morning Loungers (LON: LGRS) saw their shares rally following a 22% climb in revenues and revenue growth of 5.4%.
The success of the pub and restaurant market will certainly set an appetite for Stock Spirits, and shareholders can remain optimistic for positive updates and stronger trading figures in the early start of 2020.
