Czech-based beverage company Kofola Group reported third quarter sales of CZK 1.98 billion (+3.2% y/y), with EBITDA of CZK 357 million (+5.8%).
There was growth in the Czech Republic and Slovakia (CZK 1.27 billion), and the Adria region (CZK 389 million), however, revenue dropped 25.3% in Poland to CZK 322 million.
Overall, for the first nine months of 2017, Kofola's sales dropped 1.3% to CZK 5.35 billion, with EBITDA falling 17.1% to CZK 706 million, mainly influenced by the battle for higher margins in the Polish market and by the high price of sugar.
Profit in the period dropped to CZK 216 million, from CZK 329 million a year earlier.
Regional Performance
In the period from January to September, Kofola’s year-on-year revenues in the Czech Republic and Slovakia increased by 3.6% to CZK 3.44 billion, while sales in the Adria region went up by 23.7% to CZK 933 million. Poland accounted for the remaining sales, totalling CZK 978 million.
In the Czech and Slovak markets, which account for two thirds of profits, the company experienced success mainly thanks to the Rajec, Rauch and Vinea brands. Sales of UGO, Freshbar and Salaterie also fulfilled expectations.
In Poland the group is investing in brands and decreasing its dependence on private label products. Kofola reached an agreement with Nestlé to become the sole supplier of Nestea ice tea beverages in the Polish market from 2018.
In the Adria region, the company says that it has greatly benefitted from the acquisition of mineral waters Radenska and Studenac in Slovenia and Croatia.
© 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
