Česká Zbrojovka Group Reports Record Net Profit

CZG – Česká zbrojovka Group, announced its audited consolidated financial results for 2019. The company generated revenues of CZK 5.96 billion, up 11.6 percent year-on-year. The Group posted a net profit of CZK 734 million, up 29.1% year on year. 

In 2019, CZG generated revenues of CZK 5.96bn. Compared to the year 2018, when CZG generated revenues of CZK 5.34bn, the Group recorded a revenue increase of 11.6% in 2019. The EBITDA of CZG grew by 20.4% to CZK 1.34bn compared to the year 2018. The net profit of CZG increased y-o-y by 29.1% to CZK 734m. The foregoing results reflect the Group’s continued operations only. The revenues from discontinued operations 2 amounted to CZK 471m.

“In 2019, CZG achieved record results and grew in all key financial parameters. This growth is even more significant considering the fact that the results of the Firearms and Accessories segment alone exceeded the 2018 results including also Automotive and Aviation Segment,” stated Lubomír Kovařík, the President of CZG. “In January 2020, we transferred the production of components for automotive and aviation industry outside of the Group in order to streamline operations and promote more effective development of these two very distinct industrial segments,” added Lubomír Kovařík.

Last year, the Group’s revenues grew in all key markets compared to 2018, primarily in the United States, Europe (excluding the Czech Republic), the Czech Republic and Asia. The United States remained the most important market for CZG in terms of revenues. CZG exported to customers in more than 90 countries around the world in 2019.

“This excellent performance was due to the hard work and commitment of our employees, our high-quality and innovative products, new business opportunities and dedication of the entire management team,” highlighted Lubomír Kovařík.

CZG’s great advantage remains its ability to customize its products for the most sophisticated military and law enforcement customers. The Group also provides customization options to its personal defense customers with an online firearms configurator in selected markets.

Last year, CZG announced its intention to build a new production and distribution facility in Little Rock, Arkansas, USA, as part of its strategic plan to establish a substantial production presence in the United States and enter the federal military and law enforcement market there. The launch of production is expected by the end of 2021. Once fully operational, the new production facility will increase CZG’s production capacity and allow it to pursue further business opportunities on the U.S. market.

CZG is headquartered in the Czech Republic and it has production facilities in the Czech Republic and in the United States. It employs around 1,600 people in the Czech Republic, the United States and Germany. The Group places great emphasis on investing on a regular basis both into product-related research and development and in improving the conditions in its workplaces.