Business

Kofola Group on a Wave of Growth

26.03. 2019

Kofola Group´s revenue in 2018 grew by 2.2% compared to 2017, EBITDA increased by 6.4%, EBIT by 15.3%. Sales increased in the Czech Republic, Slovakia and the Adriatic region. Kofola's positive economic results were maintained despite the very difficult situation on the Polish market, where Kofola, until recently, operated via Hoop Polska. This company was sold in March 2019. Kofola will remain in the Polish market thanks to Premium Rosa, a producer of fruit and herbal juices.

Kofola Group on a Wave of Growth

The Group's sales, excluding those of Hoop Polska, grew by 7.2% year on year (discounting recent acquisitions, by 4.1%). The EBITDA increase was driven by very positive results in the Czech Republic mainly arising from higher volume of sales and lower sugar prices. The growth was driven mainly by Kofola, Vinea, Rajec and Rauch. Revenues on the Czech and Slovak markets increased by 7.3% year on year (without recent acquisitions, by 4.3%), especially in the HoReCa and Impulse segments the performance was very good. Daniel Buryš, CEO of Kofola for the Czech Republic and Slovakia states: "we are pleased to announce that we have extended the exclusive contract for the CzechoSlovak market with Rauch for another five years."

Revenues in the health food segment also grew significantly. More than 80 UGO Freshbars and Salateries served 4.5 million customers in 2018, and reported 7% higher year-on-year sales. Net sales for the entire UGO trade company, excluding franchise segment sales, while including sales of bottled fresh juices and packed salads, reached CZK 452 million year on year.

Results from the Adriatic region in 2018 were also pleasing. The group reported a growth of 2.6% in Slovenia and Croatia, with increases in sales in both countries. In the region, consumers predominantly purchased the Radenska brand (which will celebrate its 150th anniversary in 2019), with revenues from the production and distribution of Pepsi also making a significant contribution.

Jannis Samaras, CEO of Kofola Group states: “we are very satisfied with the economic result. The weather was kind to us and the demand for healthier foods with higher added value is also beneficial for us. It is a pleasure to see that our brands Premium Rosa, Titbit or LEROS are popular with customers, and they have contributed almost CZK 300 million to group revenues in 2018. It shows that our estimates of demand, made some years before, were accurate. At the same time, we are very pleased that we have managed to leave the Polish company, Hoop Polska, in good hands. This has allowed us to invest our time and focus our energy on growing markets and activities that we are good at and want to develop.”

Based on the excellent results in 2018, Kofola's Board of Directors will propose to the shareholders a dividend payment of CZK 300 million.