News and current reports
Kofola Group Financial Results in 9M2017: Stable growth of Kofola in Czechoslovakia, in the Adriatic region the company has pumped it up, in Poland it will become an exclusive distributor of the Nestea brand.
The main season was a success for Kofola, the sales in the third quarter grew by 3,2 % and the EBITDA by 5,8 %. And all that despite the coldest September in the last decade. In nine months, Kofola’s year-on-year revenues in Czechia and Slovakia have increased by 3,6 %. The company also did extremely well in the Adriatic Region where its sales increased by excellent 23,7 %.
Despite this success, the Group’s total sales have been lower by 1,3 % since the beginning of the year. So far, Kofola has also been showing a lower operating profit EBITDA by 17,1 %. As in the previous quarters of the year, the decrease of the economic result is caused by Kofola’s battle for higher margins in the Polish market and by high price of sugar.
Daniel Buryš, the CFO of the Kofola Group, comments on the economic result: “The total year-on-year sales of Kofola, excluding the Polish market, grew by 8,4 %. We are very pleased by the Adriatic Region where we are greatly benefiting from our successful acquisitions in Slovenia and Croatia. In a long term we have been successful on the Czechoslovakian market that forms over two thirds of the Group’s profit. In Poland we are investing into own brands and decreasing our dependence on private labels. We are starting the Christmas season, which belongs to the highlights of the whole year thanks to our portfolio structure. The positive effect of Christmas can be most seen in the sales of the traditional Kofola and Happy Day juice beverages”.
On the Czechoslovak market, the company experienced success mainly thanks to Rajec, Rauch and Vinea brands. UGO, the Freshbar and Salaterie brand, has also fulfilled the expectations. Thanks to 82 branches, UGO increased its sales by over a third. The domestic market penetration is sufficient and UGO is now going to focus on achieving the planned profitability.
On the Polish market, Kofola succeeded in making an agreement with the owner of Nestea ice tea beverages, the company Nestlé S.A. It is going to be no one else but the Kofola Group that will be supplying the Polish market with these beverages, starting from the year 2018.
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