Czech non-alcoholic beverage group Kofola generated €134.8 million of sales revenue in the first half of its financial year, 1.9% more than in the same period last year.
Excluding the group's Polish operations, sales increased by 7%, thanks to warm weather and lower sugar prices. EBITDA grew 25.9% to €17.2 million (+25.9%).
Operating profit increased by 113.7% to €6.6 million, a performance that exceeded expectations, according to the company.
Regional Performance
The company's biggest market was the Czech Republic which saw an 8.9% growth in year-on-year sales, due to demand for the Kofola, Rauch and Vinea brands, while the Ugo brand posted 24.1% higher sales.
In Slovakia, sales grew 4.1%, with higher sales by both the Rauch and Kofola brands, as well as Race.
In Poland, the company saw a drop in revenues of 19.3%, mainly in the private label brands segment, where its share fell by 20% to 18%, while sales of own brands were stable.
The Adriatic region, which traditionally reports good sales, saw 6.6% growth, despite a very cold June. There were growing sales in Croatia for Pepsi, which the group distributes on a third party basis, and own brand Radenska, with overall sales growing by 16%.
Among the Group’s brands, the highest sales in the reference period were achieved by the Ugo fresh juices brand, which grew by as much as a quarter year-on-year to €11 million.
Acquisitions
In the first half of 2018, Kofola Group acquired Leros, a producer of high quality products from medicinal plants and quality natural teas, and Minerálka, which owns mineral water brand Kláštorná.
For the first six months of the year, investors received the highest dividend paid in the company's history, amounting to €0.63 per share.
According to Kofola Group CFO Daniel Buryš, as a result of the strong performance in H1, the company will update its outlook on the year-end results after the third quarter.
Regionally, Kofola Group is the biggest player in the soft drinks market in both Slovakia and Slovenia and the second biggest in the Czech Republic. It is also the leading water brand in Slovenia (with the Radenska brand) and the leading private label soft drinks producer in Poland.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
