Stock Spirits says Polish tax hike to hit 2014 profits

28th Jan 2014 08:09

A hike in tax on strong alcohol in Poland is set to cut 2014 sales and profits at Central and Eastern European spirits producer Stock Spirits.Stock, which sells Keglevich Dry vodka, Tullamore D.E.W. Irish whiskey and Napoleon Ambassador brandy, said the 15% increase that came in on January 1st would reduce reported sales and pre-tax earnings before interest and other items this year.However, it said it was also likely to have boosted sales and profit in the final three months of 2013 as drinkers stocked up before the tax rise.Under a deal struck with rival Diageo last year, Stock began distributing Diageo's premium brands, which include Smirnoff vodka and Johnnie Walker whisky, from January 19th.Stock's Chief Executive Christopher Heath said: "Given the strong fourth quarter performance, the group is well placed to deliver full year results in line with management expectations and we remain excited about the group's opportunities."Shares fell more than 5% to 270p in early trading in London. PW