Czech beverage producer Kofola Group ended 2020 with better than expected results, despite significant market limitations caused by COVID-19.
Annual revenues were down 3.7% to CZK 6.2 billion (€240.3 million), while EBITDA dropped 8% to CZK 1.03 billion (€39.9 million). EBITDA margin stood at 16.7%.
The Czech-Slovak market accounted for CZK 4.5 billion (€174.4 million) in revenue, with the Adriatic region contributing for CZK 1.1 billion (€42.6 million) and the Fresh & Herbs unit accounting for the remaining CZK 571 million (€22.1 million).
Net profit fell from CZK 285 million (€11 million) to CZK 181 million (€7 million), mainly as a result of the COVID-19 impact on the HoReCa business segment.
On the positive side, the group registered its best-ever summer season, driven by higher consumption of Kofola and other local brands by domestic tourists in both the Czechia and in Slovakia.
Things also went well in the Adriatic region, which relies mostly on its own brands of Slovenian Radenska and Croatian Studenac mineral waters.
Medicinal herb brand Leros completed its merger with Espresso, thereby fully integrating coffee into its portfolio. A new coffee brand – Trepallini – was introduced, but the pandemic slowed down expansion into the coffee segment.
Elsewhere, its fresh juice bar busness, Ugo, went through a very difficult year, especially due to the forced closure of its branches, which prompted Kofola to close some outlets permanently, with more to follow, although it claims it still sees a future for this segment.
For 2021, Kofola Group confirmed its estimate of EBITDA operating profit of between CZK 1.03 billion (€39.9 million) and CZK 1.15 billion (€44.5 million).
Kofola Group is the market leader for soft drinks in Slovakia and Slovenia and the second biggest player in Czechia. In the mineral water segment it is the leading brand in Slovenia and second in Croatia.
The Group’s portfolio includes more than 30 own brands, which it distributes through the retail, HoReCa and impulse channels. The portfolio also includes products it distributes under license in selected markets, as well as those produced for third parties, mostly big retail chains.
© 2021 European Supermarket Magazine. Article by Branislav Pekic. For more Drinks news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.