Kofola had a record-breaking summer, consumers were loyal to traditional brands
The Kofola Group improved the key economic indicators, with impressive results, especially in the CzechoSlovak segment, built on traditional brands. In the third quarter, it recorded revenues higher by 219.5 mCZK, EBITDA grew by 121.2 mCZK. This enabled Kofola to create a reserve for economic fluctuations connected to the second wave of the coronavirus pandemic.
“The summer season is what decides a successful year in our area of business. I am glad that this season has been the best so far. Our traditional products are something our consumers can rely on, even in insecure times. We managed to achieve revenues 21.4% higher compared to the previous quarter in the Czech Republic and Slovakia, and the increase for the whole Group was 11.8%,“ says Jannis Samaras, CEO of the Kofola Group.
In terms of categories, the best results were achieved by syrups, but sales of waters grew as well. “Between the two quarters, our syrups recorded 20.5% higher revenues, and even 35.5% for waters. This result was helped by the acquisition of Ondrášovka and Korunní mineral waters, which have been this year´s addition to our portfolio. I was pleased to see that our two new products – Korunní in glass bottles and Ondrášovka with litchi flavour – sold even better than expected“, Jannis Samaras assesses. Kofola saw growth of the market share in Kláštorná Kalcia mineral water, a brand it reintroduced two years ago. Its bottle made of rPET has been a success not only with consumers but also in prestigious competitions. Recently, Kláštorná Kalcia was awarded the BEST IN PET category at the international competition of bottled waters Global Water Drinks Awards 2020, the only brand from the CzechoSlovak region.
In the third quarter, revenues were also rising in the herbal segment of the Kofola Group, represented by the Polish Premium Rosa, and LEROS, the traditional CzechoSlovak producer of herbal blends. The company enters the main tea and coffee season with its own brand of original Italian coffee, Trepallini, which has been developed in cooperation with an Italian family roastery and the ARC coffee institute.
The least successful brand in the Group´s portofilo was UGO, affected by the impact of coronavirus measures and weakened economics. The impact of COVID-19 was also visible in the Adriatic region, where tourism was limited, and the Group saw a decrease by 6.7%. Meanwhile, the Radenska company continued its sustainable activities, introducing Radenska Naturelle mineral water in a 100% rPET bottle, and, at the same time, launching a campaign to support the planting of 20 000 trees in Slovenia and Croatia.
“We entered 2020 with a strong balance. Our EBITDA is, in the first nine months, higher than this time last year, Ondrášovka and Korunní have performed as expected. We are still sticking to our target EBITDA for 2020 of between 950 and 1 000 mCZK; however, with regards to the current impact of the pandemic, it will probably be around the lower limit. In my view, there is nothing standing in the way of paying dividends 13.50 CZK per share. We are going to continue in our proven cost flexibility mode, and good phasing of seasonal expenses in the upcoming period of persisting general economic restrictions,“ says Jannis Samaras, closing Kofola´s outlook for the rest of the year.
