LONDON (Alliance News) - Drinks distributor Stock Spirits Group PLC on Thursday said its first quarter revenue grew year-on-year, with the figures coming ahead of a vote on the future of its board at its upcoming annual general meeting.
Last week, Stock Spirits' largest shareholder said it had requested the removal of Chief Executive Chris Heath. Western Gate Investments, which holds a 9.7% stake in the business, has raised concern about the decline of Stock Spirits' market share in Poland, its underperforming shares and about rises in corporate costs in recent years.
Stock Spirits on Thursday said its AGM, which had been due to take place on May 17, will be moved to May 23 "in order to respond fully to the recent statements made by a shareholder in respect of the resolutions requisitioned".
The company said revenue for the quarter to the end of March grew to EUR55.3 million from EUR42.7 million a year earlier, up 29%. The company said its made market share gains in the Czech Republic, though its market share in Poland - the main concern raised by its dissident shareholder - sank to 29.5% from 36.9%.
Stock Spirits said, however, that it returned to profit in the first quarter in Poland following a loss a year earlier and continues to hold leading positions in the flavoured vodka category.
"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," said CEO Heath.
"It is still early days, but we are pleased with the start the new products we launched in 2015 have made and the recent medal awards for both our core brands, and several new products launched in 2015, continues to confirm the outstanding quality of our brands versus their competitive set," he added.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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