CEDC to remain acquisitive
substantial increase in both its net sales and net income for its
operations Poland as a result of a number of acquisitions over the
past two years. The company also says that it will continue to be
acquisitive in the coming year.
The US-owned company said that its net sales for 2003 had increased by 46 per cent to $429.1 million (€347.1m), up from $294 million in 2002. Net income for 2003 increased 82 per cent to $15.1 million, from $8.3 million in 2002.
CEO William Carey said: "For the last five years including 2003, we have had a compounded average growth rate of 37 per cent for net sales and 36 per cent for earnings per share.
"We intend to remain aggressive in 2004 in terms of increasing our vodka market share through continued organic growth and acquiring targeted niche distributors that can fill market voids. We are currently looking at three to four distribution companies with combined net sales of approximately $120 million in 2003, and we expect to complete some or all of these companies this year."
"We are also committed to build our own brand portfolio and are currently conducting due diligence of a privately held Polish distillery, which we expect to close in the first half of this year. We expect the acquisition to be accretive to 2004 projected earnings."
In June last year, CEDC announced it ninth acquisition in Poland when it paid around €2 million for the acquisition of Warsaw-based business Panta-Hurt. The company began trading in Poland back in 1998 and has been one of the pioneering movers towards privatising the largely state-owned alcohol industry in Poland.
Currently CEDC is one of the leading importers of beers, wines and spirits, as well as the largest distributor of domestic vodka on a nationwide basis, in Poland. The company operates nine distribution centers and 58 satellite branches throughout Poland. It distributes leading spirit brands such as Johnnie Walker Scotch, Stock Brandy and Jose Cuervo Tequila, Mondavi and Concha y Toro wines, as well as beers from Corona, Beck's, Foster's, Grolsch and Guinness.
