Seidman Investment Portfolio Organization

 

Company: Central European Distribution Corp.
Analyst: Alex Perry
Sector: Consumer Staples (Nasdaq:CEDC)

The CEDC group (Central European Distribution) is a leading vodka producer in Poland and one of the largest in the world. The company is also the largest importer and distributor of alcoholic beverages in Poland and Hungary. The CEDC Group operates two production facilities, 17 distribution centers and 87 satellite branches in Poland. CEDC's portfolio includes more than 900 brands of alcohol products, including vodkas, liqueurs, brandies wines, whiskies, and beers. At year end 2008, CEDC had seen additional growth of 38% with a gross profit of $411 million, a 100% increase year over year.

Despite the collapse of many Eastern European economies, CEDC has managed to maintain afloat. Revenues are down compared to the past two years; however, quarter to quarter growth in 2009 has been 66%. As of 2Q09, FCF were $60 million. Long term debt and selling expenses had increased considerable over the last year as CEDC pushes further into Russia and expands distribution within the European market.

Central European still is a formidable small cap company with a diversified product line, established distribution network, and capacity to grow.

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Page last modified March 11, 2012