In June, Kofola achieved highest sales ever. Results from the Adriatic region are pleasing.

23.03. 2018

Despite the record growth in sales in both the Czech and Slovak Republic, as well as the Adriatic region, the Kofola Group expectedly reported a year over year decrease of 3.8% in the first half of the year. EBITDA declined by 32.1% year over year.

However, successful acquisitions in the Adriatic region are still making the group’s owners happy. Sales have grown by 19.2% in the region. The share of EBITDA from this region in the Group's total economy increased year over year from 14% to 20%. In particular the fact that the EBITDA of the region is growing despite the large investments in commercial costs and the construction of the distribution network is positive. There are two main sources of this success - firstly, the work with the product portfolio and the innovation brought to the market by the group, such as the Radenska sports line, which is a new approach to flavoured waters and, the revival of traditional lemonade brands. Secondly, source is the increase in the efficiency in factories and improvement of internal processes. 

"Since the acquisition, we have been able to consolidate and even increase the dominant share of the Radenska brand in the mineral water category. This year, we have also excelled in the lemonade category, with for example, the traditional Ora trademark record market share of 45% in June," comments Jannis Samaras on the Slovenian Market, CEO of Kofola Group CzechoSlovakia.

On the domestic CzechoSlovakian market, the group increased sales by 3.2%. Rajec and Rauch are responsible for the biggest share of this growth. The segment of restaurants and impulse formats is again the fastest growing, where the company recorded a year over year growth of more than 8%. The UGO brand continues its rocket-like growth, its sales increased by 30.5% compared to last year, totalling CZK 43 million. In connection with the UGO brand, the group announced an acquisition, taking over the division of salad production and distribution from the Titbit company. The division produces several thousand salads a day with an annual turnover of CZK 60 million. Kofola will become the Czech leader in the category of fresh packaged salads.

In Poland, the group has taken two key steps. "By the end of the year, we will concentrate our production on a single modernized plant in Kutno and in July we bought the local, prospective and fast-growing Premium Rosa company. It specializes in products made according to traditional recipes from fruit and medicinal herbs, a segment that has grown steadily in recent years, "says Daniel Buryš, the group’s CFO, adding:"We are proceeding according to plan and I believe it will bring the results." The decline in results in Poland is mainly due to the change in business models, which is aimed at increasing the sales of own brands at the expense of private ones.

According to Daniel Buryš, the high price of sugar also affects the economic result, but that should stabilize soon. Regarding the outlook for the yearly economic activities, Daniel Buryš says: "The summer season, which is now in full swing, is very important for our year results in entirety, and the weather is currently on our side."