WOOD Flash – Stock Spirits Group: 2H FY19/20 – deceleration on pandemic impact, but share gains in Poland
This morning (2 December), Stock Spirits (SSG) reported its 2H FY19/20 results. The numbers were affected by the closure of the on-trade channel for most of 2H FY19/20 (the April-September period), as c.15% of the company’s total revenues are generated in this channel. At the same time, SSG accelerated its share gains in Poland in 2H and, at the end of September, its value share reached 31.6% (the highest in five years). Management announced a special dividend of EUR 0.011/share, bringing the total dividend proposal to EUR 0.206/share (a 7.6% yield on yesterday’s close). While being below our expectations, the 2H numbers were ahead of the Bloomberg consensus, thanks to stronger revenue generation, while the operating leverage delivered a beat in terms of profitability. We expect a positive market reaction to these numbers. The net debt/EBITDA stood at 0.32x (end-September 2020).Stock Spirits Group is a spirits company. Co. along with its subsidiaries are engaged in the production and distribution of branded spirits in Central and Eastern Europe. Co.'s spirits include vodka, flavoured vodka, rum, brandy and herbal bitter liqueurs. Co. has more than 40 brands and export internationally to more than 40 countries worldwide. Co.'s brands include Zoladkowa de Luxe, Lubelska, Zoladkowa Gorzka, Stock Prestige, 1906, Fernet Stock, Bozkov, Amundsen, Keglevich, Limonce, Stock Original, Keglevich, Golden, Stock 84, Fernet Stock Citrus, and Hammerhead. Co. has operations in Poland, Czech Republic, Italy, Slovakia, Croatia, and Bosnia and Herzegovina.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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