News and current reports
Last year was a successful one. The Kofola Group saw a rise in revenues and in both economic indicators.
25. 3. 2020
In the last year, the Kofola Group increased its revenues by 4.1% to CZK 6 410 million (EUR 249 668 thousand), the value of the EBIT key indicator jumped by 2.9% and the EBITDA by 5.9%. This very positive economic result was helped by last quarter, higher sales in the HoReCa segment, and in the terms of brands – primarily Royal Crown Cola, Jupí syrups and Semtex energy drinks. In the Adriatic region, Croatia scored very well in revenues after adjustments to the distribution model. This year, the key priority for the Group will be to effectively meet the challenge of the coronavirus pandemic.
“Revenues in 2019 grew by 4.1%, exceeding the target of CZK 1 080 million (EUR 42 069 thousand) EBITDA by 3.6 % to finish at CZK 1 119 million (EUR 43 604 thousand), despite worse weather and growing segment costs. Last year, we also made some significant changes to our structure. We sold companies in Poland and Russia and created a new business segment, with the scent of tea, coffee and herbs. These steps enabled us to put maximum focus on our strong non-alcoholic segments in both key geographics, and to further develop the natural segment in connection with our “Fresh & Herbs“ business diversification. At the beginning of this year, we also bought F.H.Prager ciders, and we are now diving into the principles of fermented drinks, which is a segment with great potential,“ says Jannis Samaras, head of the Kofola Group, evaluating last year, and adds: “apart from traditional and clearly given tasks for this year, we are about to integrate acquisition of Korunní and Ondrášovka mineral waters. In order to become a more appealing brand to our customers and consumers, as well as investors, we are also going to focus on new projects to push us significantly forward in the terms of ecological issues. “
Last year was very successful for the Group in CzechoSlovakia, in the HoReCa segment. Its market share in Czechia rose to 27.8% and, in Slovakia, to 41.2%. A relatively new brand in the Group‘s portfolio, the natural mineral water Kláštorná Kalcia, which, after entering the Slovak market is now, also, newly available to Czech consumers, has shown great sales potential. Other brands that did well, apart from Kláštorná Kalcia, are the energy drinks Semtex and Royal Crown Cola, beating, in terms of sales, even the sunny year 2018.
Meanwhile, in the Adriatic region, the Slovenian natural mineral waters Radenska and Ora sodas again achieved excellent results. This year, Croatia, where changes to the distribution model were rewarded by growth in revenues, scored big time, outperforming even its perfectly functioning neighbor, Slovenia. In 2020, the Group will finish its significant investment in the Lipik production plant that will bring about a considerable streamlining in production.
In Fresh & Herbs, the newest segment of the Kofola Group, sales of the UGO brand were successfully built up with revenues increasing by almost 7%. The LEROS company, a newcomer in the Group, succeeded in completing the portfolio for warm beverages, where the company is now also able to offer tea and coffee, aiming towards much more continuous growth in the future. This year, we can expect some marketing news from LEROS by Karel Hrbek (Kofola´s marketing director until the end of last year).
Apart from traditional plans and goals, the Kofola Group is also focusing on development of brand new ecological projects – for example, the Green Rajec Valley project and production of its own herbs, the support of draught beverages without packaging (e.g. the newly-launched Rajec spring water in kegs), and significant support of returnable glass bottles in HoReCa or targeted weight decrease of bottles and caps, meaning a significant drop in use of plastic.
The Group, like the whole world, has been currently facing the COVID-19 pandemic. The Group´s first priorities now are to ensure employees’ safety, to keep production running, to face its logistical challenges, and to minimize the negative impact of this situation on its operation. Working locally, one of the key values of the Group’s strategy, is proving to be a significant advantage at a time when the world is being closed out. The Group is continuing to keep abreast of the latest developments in individual countries, analyzing impacts, and preparing for possible future scenarios.
Further information can be found in the section Reports and presentations.