East Imperial shares gain on positive New Zealand update
() , a producer of premium beverages, issued an update on recent trading in New Zealand as well as its margin improvement initiative.
East Imperial announced significant Tier 1 and Tier 2 on-premise account wins in New Zealand for November and December 2023, most notably the new Ayrburn precinct in Arrowtown, South Island. was appointed the "premium mixer partner" for the site following a competitive pitch process.
The producer of premium beverages also announced account wins for two new luxury 5-star hotels in New Zealand. As of December 13, the Pullman Hotel at Auckland Airport features East Imperial as its exclusive mixer provider, which is due to be followed by the planned January 2024 opening of the new InterContinental in downtown Auckland.
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A positive trading update from East Imperial detailing material progress across its New Zealand portfolio in Q4 2023. Markets reacted well to the news, sending shares 9.5% higher in early trade.
The Ayrburn account win is particularly notable as the site features a large number of fine dining restaurants, a cellar door, and several themed luxury bars. Likewise, the InterContinentnal contract extends East Imperial's strong relationship with the luxury hotel group, bolstering future revenue visibility.
East Imperial also reported progress in its margin improvement programme implemented in mid-2023. The company said the programme had started to deliver "significant margin improvement" as moves toward its 35% target, in line with guidance. This was achieved through several initiatives, including price increases and ongoing supply chain changes that see less reliance on 3rd party logistics providers.
Overall, the update indicates a strong rebound in on-premise trading in October and November, with positive momentum into December and 2024.
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