Kofola ups sales by 18.7 pct to Kc7.88bn in 2022

Ostrava, North Moravia, Feb 15 (CTK) - Soft drinks maker Kofola saw its sales rise by 18.7 percent yr/yr to Kc7.88bn in 2022, while its EBITDA (earnings before interest, taxes, depreciation and amortisation) fell by 1.8 percent to Kc1.11bn, according to preliminary results, the company told CTK in a press release today.

It said it had met the set objectives and posted successful results despite increased costs of energy and materials.

Growing sales in key sales channels, a record summer season, year-on-year growth in the on-the-go category, as well as the growing popularity of fresh juices and herbal teas contributed to the operating profit, Kofola said.

The growth of prices of energy and materials resulted in additional costs of about Kc0.5bn for the group.

"Inflation and rising costs in all of our major cost categories - from materials, energy, transport, personnel, and service costs - have caused high price pressures, which we have had to offset by seeking further savings and gradually increasing our selling prices," Kofola Group CEO Jannis Samaras said.

The company managed to exceed its last announced annual EBITDA target thanks to flexible decision-making, efficient management, and excellent sales performance, according to Samaras. "But although the results appear very good, it must be said that three years ago we thought we would be much further ahead today. The reality of recent years has influenced our strategic plans," he added.

In the Czech Republic and Slovakia, Kofola's key regions, its sales rose in all beverage formats. Sales in the segment of drinks for home consumption increased by 9 percent yr/yr, and in the gastro segment, where Kofola serves more than 17,000 customers, its sales grew by 51 percent.

"Draught Kofola (beverage) dominated the summer season. Packaged beverages, especially on-the-go formats, also did well, with sales up," said Daniel Buryš, CEO of Kofola for Czechia and Slovakia.

However, despite the surprisingly positive revenues, EBITDA of the beverage segment in Czechia and Slovakia declined due to increased input prices, he added.

In Slovenia and Croatia, the group's sales exceeded the last pre-coronavirus year 2019. The sales in both countries in litres increased by 8 percent yr/yr and export recorded double-digit growth, Kofola said.

Kofola's UGO network of fresh healthy food and salad bars also showed a significant improvement in EBITDA last year, and sales in this segment rose by 58 percent.

"Another positive fact about Kofola's overall performance is that the Group managed to reduce its net debt to EBITDA ratio to below 3 through a combination of good results and cost-saving measures," the company said.

Kofola has entered 2023 with a promise to achieve a total EBITDA target of Kc1.1bn to Kc1.25bn. It is planning significant product innovations that could contribute to it.

Kofola is a leading soft drinks maker in Central Europe. It has 11 plants in five European countries and employs more then 2,000 people. Its product brands include Kofola, Rajec, Korunni, Ondrasovka, Klastorna Kalcia, Jupi, Vinea and Semtex. The group also includes the UGO fresh and salad bars, Czech herbal tea maker Leros, Slovenian company Radenska and Croatian mineral water producer Studenac.

Kofola is majority owned by company Aetos belonging to the Samaras family and other Kofola founders, Rene Musila and Tomas Jendrejek.

Kofola's preliminary financial results (in Kc bn):

	Jan 1, 2022 - Dec 31, 2022	Jan 1, 2021 - Dec 31, 2021	change 2022/2021	change 2022/2021 in pct
sales	7.88	6.64	1.24	18.7
EBITDA*	1.11	1.13	-0.02	-1.8

*adjusted for one-off items

Source: Kofola

tam/er