Czech cola maker Kofola has reported 33% year-on-year growth in revenue in the third quarter, driven by good performance across all businesses, including the newly integrated breweries.
Last year, the company entered the beer business with the acquisition of Pivovary CZ Group, the country's fifth largest brewer.
Kofola saw year-on-year sales growth of 10% during the quarter, driven by its performance in July and August.
Sales exceeded CZK 800 million (€31.6 million) in Czechia and Slovakia in this period, setting a new for the company.
Daniel Buryš, CEO of the Kofola ČeskoSlovensko, stated, "Both sales channels, i.e. retail and HoReCa, maintained growth of 10%. Kofola [...] also grew by the same percentage, benefiting fully from a new strategic set-up, a successful redesign, and the strongest festival season so far."
Group EBITDA for the first nine months reached CZK 1.6 billion (€63 million) and the company expects it to remain at the upper end of its previously announced range for the full year.
Quarterly Highlights
The company's Targa Florio, Kláštorná Kalcia, Korunní and Rajec brands and Royal Crown Cola saw good performance during the third quarter.
Energy drink brands Semtex and Semtex Extreme grew its market share in the on-the-go drinks segment with a new product architecture.
"Higher sales in the Czech Republic and Slovakia were matched by rising EBITDA supported by stable energy, raw material and material prices," added Buryš.
In the Adriatic region, the company saw strong sales across all markets in the latest reporting period, with Slovenia and Croatia posting growth of 9% and 18%, respectively. Elsewhere, its export markets saw sales growth of 14%.
The company's performance was driven by better execution of activities in the market, supported by effective logistics, and a longer tourist season, which extended into September due to warm and sunny weather.
However, floods in mid-September affected Kofola's Krnov production plant and the warehouse and logistics area of its subsidiary company Santa Trans.
Divisional Performance
Kofola's fresh and herbs segment also reported good performance with Ugo reporting double-digit year-on-year revenue growth in the third quarter.
Ugo is a supplier of fresh food and juices and operates Freshbars and Salaterias - restaurants offering healthy foods.
Gross sales in the unit increased 17% year on year, with Freshbars and Salaterias emerging as the fastest-growing division with 20% year-on-year growth.
"In the centre of Prague we opened Salateria in the Quadrio shopping centre, in České Budějovice we opened Freshbar in cooperation with a new franchisee. It is performing well beyond expectations, so we are looking for a potential location for Salateria in the region," added Marek Farník, CEO of Ugo Trade.
