CEDC reports profit rise

WSE- and Nasdaq-listed producer and distributor of liquors, Central European Distribution Corporation (CEDC) saw a 51 percent y/y growth in net sales revenues, reaching $452.4 (zł.1,253) million. Net profit reached $41.7 (zł.116) million, as compared with $18.3 (zł.50.7) million in Q3 2007. The diluted net profit per share jumped from $0.89 to $0.45 (zł.2.47 to zł.1.25) y/y.

Strong organic growth was the key driver of financial results, according to the company. The Russian market brought 25 percent y/y organic growth, for example. Polish operations saw seven percent growth.

"We continue to see a growth in margins, especially thanks to very good results of our key vodka and exclusive import brands," the company's president William Carey said.

CEDC expects gross margins to reach 28-30 percent in Q4 and operational profit to grow by 4.5 to 5.5 percent as compared with Q3.

"The last quarter is the most profitable quarter in the year," Carey added.

The company also raised its 2008 projections from $2.75-2.95 (zł.7.63-8.18) diluted net profit per share to $2.85-3.05 (zł.7.9-8.45) and maintained its projections for $1.65-1.8 (zł.4.57-4.99) billion net sales revenue.

The year 2009 will bring net sales revenues of $1.93-2.03 (zł.5.35-5.62) billion and $3.75-4 (zł.10.39-11.06) diluted net profit per share, the company predicts.

CEDC is the biggest vodka producer in Poland and its key brands include Absolwent, Żubrówka, Bols and Soplica. It is also a key importer of liquors in Poland and Hungary.