Business

In June, Kofola achieved the highest sales in its history. The Adriatic region makes them happy.

23.03. 2018

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

Successful acquisitions in the Adriatic region are still making the group’s owners happy. Sales have grown by 19.2% there. The share of EBITDA from this region in the Group's total economy increased year-on-year from 14% to 20%. Positive is 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. The main sources of this success are two - the first one is the work with the product portfolio and the innovation brought to the market by the group, such as the Radenska sports line, a new approach to flavoured waters, the revival of traditional lemonade brands. The second source is the increase in the efficiency in factories and acceleration 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 also excel in the lemonade category, with the traditional Ora trademark record market share at 45% in June," comments on the Slovenian Market Jannis Samaras, CEO of Kofola Group CzechoSlovakia.

On the domestic CzechoSlovakian market, the group increased sales by 3.2%. Rajec and Rauch have the biggest share of this growth. The segment of restaurants and impulse formats is growing fastest again, where the company recorded a year-on-year growth of more than 8%. The UGO brand continues in its rocket growth, its sales increased by 30.5% compared with last year, namely by 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 a local, prospect 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 the plan and I believe the results will come." The decline in the result in Poland is mainly due to the change in the business model, 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 whole-year economic activities, Daniel Buryš says: "The summer season, which is now in full swing, is very important for our whole year results, and the weather is currently on our side."