William Malcolm

Kofola Revenue Down 3.7% In 2020

Last year, the Kofola beverage group’s revenues fell by 3.7 percent year-on-year to 6.17 billion crowns. According to preliminary economic results, the EBITDA decreased by eight percent to CZK 1.03 billion. With a significant market constraint in the last months of the year caused by a coronavirus pandemic, the group closed 2020 slightly above expectations.

“Before the end of the year, we estimated the result of the EBITDA indicator in the range of 950 million to one billion crowns. Said Jannis Samaras, CEO of the Kofola Group.

According to Kofola, the relatively low decline in sales is also due to the successful acquisition of the Ondrášovka and Korunní mineral waters, which contributed to the growth of their retail market share. “The coronavirus pandemic caused us a loss in EBITDA of approximately 280 million crowns, which we managed to significantly compensate with a good result in the summer months and also with a consequence from Ondrášovka and Korunní., “said Samaras.

In Kofola’s fourth quarter, sales fell by less than 12 percent year on year. The EBITDA indicator was lower by 140 million crowns.

Coronavirus restrictions affected the gastronomy segment the most. “The restriction of mobility and the closure of shopping centers then harmed UGO brand sales development. On the contrary, the growth of sales even during the pandemic was recorded by the traditional Czechoslovak producer of herbal mixtures Leros,” the company said.

This year, Kofola aims to increase the EBITDA indicator to 1.03 to 1.15 billion crowns. “We expect that 2021 will be full of restrictions related to the coronavirus pandemic as well as 2020 … But unlike 2020, we are much better prepared. We already have experience with lockdowns, we have adjusted the cost structure and expect synergies from Ondrášovka and Korunní integration, “said Kofola ‘s CFO Martin Pisklák. According to him, Kofola will also reduce indebtedness by reducing investments.

Kofola is one of the most important soft drinks producers in Central Europe and has 11 production plants in five European markets. In addition to the same name’s drink, the company’s products include drinks from the Rajec, Jupí, Vinea, Jupík, Semtex, or Top Topic brands. The group consists of the Slovenian company Radenska and the Croatian mineral water producer Students. Last year, the Kofola Group became the owner of a 100% stake in Karlovarská Korunní and Ondrášovka and also bought the Czech cider manufacturer FH Prager.

Kofola has over 2,000 employees. The majority owner of the group is the company Aetos belonging to the Samaras family and other founders of Kofola, which are the shareholders René Musila and Tomáš Jendřejek.