CEDC Q1 Sales Rise, Predicts Further ImprovementMay 4, 2011
Central European Distribution Corp’s (CEDC) first-quarter sales rose 4.6% to $157 million, boosted by a turnaround in Poland, but the group still posted a $17 million loss on a comparable basis with the same period last year (on a reported basis, CEDC posted net income of $1.1 million for the quarter). Sales growth was driven by an 8% volume increase in vodka sales in Poland against a market that was down 6.5% for the quarter. New brand Zubrowka Biala was instrumental in that performance, and CEDC says more new brands and relaunches are in the pipeline for Poland over the course of the year.
“We believe we’ve turned the corner regarding our vodka growth and continue to see strong import growth from our leading import portfolio which represents over 46% of our Polish revenue base today,” said CEDC president and ceo William Carey.
Meanwhile, CEDC says it will launch two new products in Russia this summer and introduce new communication behind its biggest Russian brand, Green Mark vodka. The group’s import business in Russia (including Concha y Toro), performed especially well in the first quarter, rising 19%. Carey added that he expects to see improved performance in CEDC’s core markets of Poland, Russia and Hungary over the rest of the year.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.