Classic taste tempts CEDC

Central European Distribution Corp (CEDC) has completed the acquisition of Classic and raised its sales outlook for 2006.

Classic, which was acquired for about $1.3 (zł.4.04) million in cash, is an alcohol-distribution company which had projected net sales of about $14 (zł.44) million for 2006.

CEDC is Poland's leading wine and spirits distributor, and in a statement it said that it had also bought back the rights for another Polish rum brand, Rum Senorita, which Bols Poland had previously licensed to another distiller.

CEDC's chief executive William Carey said the company plans to acquire Polish distribution companies through 2007 that have an aggregate annualized revenue of $141 (zł.438) million. While backing its 2006 earnings forecast of $1.27-1.40 (zł.3.95-4.35) a share, it said it now expects net sales of $934-959 million (zl.2,900-2,982 million) for the year.

Analysts expect the company to earn $1.40 (zł.4.40) a share, on revenue of $976.4 (zł.3,036) million, according to Reuters estimates. (Reuters)