The first quarter brought a cooling to beverage business. Nevertheless, Kofola faced the challenges of the new year bravely
In the first quarter of 2025, the Kofola Group faced a decline in sales across its markets. This was primarily due to regulatory government intervention. Nevertheless, it did not falter and launched attractive new products and strengthened its dynamic growing healthy eating segment. The Group's fragrance pillar also thrived. Balance sheet for the first three months of the year: sales over two billion, EBITDA CZK 162.7 million.
In the beverage division of the Kofola Group in the Czech Republic and Slovakia, the expected decline in sales was confirmed. This was caused by the introduction of sugar tax in Slovakia, which came into force on 1 January 2025, and the pre-purchase of goods by retail customers, which as a result customers made in the last quarter of the last year.
"The most noticeable decline in sales in terms of individual formats we have seen in the large packs of our beverages for home," says Daniel Buryš, CEO of Kofola in the Czech Republic and Slovakia, and adds: "Despite this, we continued to build and strengthening our brands. We launched a new brand of fruit drinks and juices Curiosa and the new Dilmah Ice Tea. Both have successfully established themselves in the HoReCa segment. We have also expanded the Targa Florio brand offering the 1.33 PET format and a new Maracuja flavor with tangerine."
Material, raw material and energy costs developed as expected in the first quarter of 2025. However, Kofola has been looking for efficiencies in production for a long time - at the plant where it bottles Ondrášovka mineral water, it has started production on a new filling line, in which we have invested more than CZK 130 million. It will replace two older, less efficient lines and will allow us to continue optimizing costs.
The Group's second largest pillar, the brewing division Pivovary CZ Group, also saw a 10.5% decline in sales compared to last year. "In line with our long-term strategy, in February we adjusted prices on the domestic market and opened seasonal outlets later than last year. Export sales were also lower. After thirteen years, we are rebranding our key brands Holba and Zubr, which will be supported by strong communication campaigns," says René Musila, CEO of Pivovary CZ Group.
Adriatic has not escaped regulatory changes either. In Slovenia, VAT on soft drinks containing sugar has been increased, and in Croatia the charge for returnable packaging has been raised. Both changes had an impact on consumer price increases. As a result, Radenska Adriatic saw sales fall by 2% in Slovenia and 4% in Croatia, while export markets grew by 4%. "Despite these challenges, we launched a new functional drink, FunctionALL Collagen, in the Adriatic. We invested in a can filling line to increase production efficiency at the Radenci plant and started using electric trucks to serve selected customers in order to reduce CO2 emissions in logistics in the long term," says Marián Šefčovič, CEO of Radenska Adriatic.
The fresh pillar of the Kofola Group, the UGO brand, experienced the most joyful quarter. The planned sales and EBITDA were met at 100%, with salad bars breaking records in sales. And everything was getting ready for the grand opening of one of the largest Salateria in Prague. "We had high expectations of the establishment, but even the most daring plans were exceeded by this establishment, which opened on April 1. We are currently on the verge of opening another Salateria," says Marek Farník, CEO of UGO trade, with undisguised joy.
Even the fragrant pillar of the Kofola Group, LEROS, does not have to mourn. It has exceeded its planned sales and EBITDA, completed the acquisition of a new coffee plantation in Panama with the help of the Group and started investing in a coffee roasting plant, which should be operational from September in the South Moravian town of Strážnice. Similarly, the Polish division Premium Rosa exceeded the plan, investing in the expansion of production capacity and strengthening the distribution of Kofola products on the Polish market.
Kofola Group's Q1 results show a 2% increase in sales, with EBITDA down 37%. "The decline was primarily due to the effects of the sugar tax, the weather, and the fact that Easter, which is the second biggest sales peak of the year, fell into the second quarter compared to last year," explains Martin Pisklák, the Group's CFO. The beverage business is also expected to cool down in the second quarter due to the cold weather. The General Meeting is expected to decide on the dividend in this period - the Board of Directors of Kofola ČeskoSlovensko will submit a dividend proposal for 2024 of CZK 21 per share before tax to the General Meeting in June.
Results of the Kofola Group:
