Czech beverage company Kofola Group has reported a 4.1% year-on-year increase in revenue to CZK 6.41 billion (€249.6 million) in its financial year 2019, exceeding its revenue target for the period.
The business' Czech and Slovak markets generated sales worth CZK 4.43 billion (€160 million), followed by the Adriatic region with CZK 1.25 billion (€46 million), and its new Fresh & Herbs segment with CZK 781 million (€28.60 million).
The beverage company ended the financial year with a profit of CZK 285 million (€10.4 million) from continuing operations.
The company's performance was boosted in the fourth quarter with higher sales in the HoReCa segment as well as the Royal Crown Cola, Jupí syrups and Semtex brands, despite adverse weather and growing segment costs.
The group’s market share rose to 27.8% in the Czech Republic and 41.2% in Slovakia.
The company's new natural mineral water brand Kláštorná Kalcia demonstrated great sales potential, it said, while in the Adriatic region, Slovenian natural mineral water brand Radenska and carbonated soft drink Ora put in an excellent performance.
The Croatian market outperformed Slovenia, registering an 11.6% growth in revenue following a number of adjustments to its distribution model.
In the Fresh & Herbs division, sales of the Ugo brand increased by almost 7%, while Leros completed its portfolio of warm beverages with the addition of tea and coffee SKUs.
Last year, the company made significant structural changes by selling companies in Poland and Russia and creating a tea, coffee and herbs segment within its business.
At the beginning of this year, Kofola entered the craft cider and soda segment with the purchase of Czech beverage producer F.H.Prager, which it sees as a market with great potential.
The company also plans to integrate the acquisition of the Korunní and Ondrášovka mineral water brands in 2020.
The Kofola Group is focusing on the development of new ecological projects, such as the Green Rajec Valley project and herb production facilities.
It also aims to develop draught beverages without packaging, introduce returnable glass bottles in the HoReCa segment and achieve targeted weight reduction for bottles and caps.
However, for this year, the key priority for the group will be to effectively meet the challenge of the coronavirus pandemic, the company added.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine.