(By Balachander) Central European Distribution Corp. (NASDAQ:CEDC) reported a loss and decline in sales for the second quarter, and the vodka producer said it has completed the restatement of its financial statements for fiscal years 2010 and 2011.
On a comparable basis, the company's loss narrowed to $11.2 million or $0.15 per share for the second quarter from $18.0 million or $0.25 per share in the comparable period of last year.
CEDC's GAAP net loss widened to $93.6 million from $3.3 million.
Net sales fell 5.6 percent to $187.2 million, with organic growth of 7 percent offset by negative impact of FX.
Gross margin improved to 40 percent from 38 percent.
The company said vodka sales in Russia rose by 4.7 percent in value, with volume sales almost flat. Domestic sale of vodka in Poland increased by 6 percent in volume and by 20 percent in value.
Meanwhile, CEDC said the total impact on net income of the restatement for the fiscal years ending on December 31, 2011 and 2010 amounted to $31.6 million and $33.4 million, respectively.
"The total cumulative impact of the restatement for the 2010 and 2011 fiscal years did however, exceed certain thresholds as set out in the definitive amended agreements related to CEDC's strategic alliance with Russian Standard Corporation, through Roust Trading Ltd," CEDC said.
CEDC shares, which have been trading in the range of $2.49 to $7.50, closed Friday's trading session at $2.83.