Colt CZ Group (CZG) Q4 2024 earnings summary

Executive summary

• Revenues rose 50.6% year-over-year to CZK 22,376m in 2024, driven by organic growth and the Sellier & Bellot acquisition.

• Adjusted EBITDA increased 50.9% to CZK 4,599m, with pro forma adjusted EBITDA at CZK 5,430m, up 78.1% year-over-year.

• Adjusted net profit was CZK 1,933m, down 5.7% year-over-year, mainly due to higher interest costs and one-offs.

• Net leverage reduced to 2.26x post-ABB, with strong cash generation supporting future deleveraging.

• Board proposes CZK 847m cash dividend (CZK 15/share) and CZK 847m share buyback for 2024, each representing 50% of profit distribution.

Financial highlights

• Pro forma revenues including S&B: CZK 25,095m, up 68.9% year-over-year.

• Firearms sold increased 2.0% year-over-year to 634,000 units, with long firearms up 13.4% and handguns down 5.5%.

• Firearms and accessories segment revenue: CZK 15.4bn; ammunition: CZK 6.9bn (including S&B from May 2024).

• Adjusted EBITDA margin for the group: 21% in 2024.

• CAPEX for 2024 was CZK 921m, in line with guidance (up to 5% of revenues).

Outlook and guidance

• 2025 revenue guidance: CZK 25bn (+12% yoy, ±7%); EBITDA: CZK 5.5bn (+20% yoy, ±7%).

• Net interest costs for 2025 expected at CZK 631m, with stable FX and interest rate assumptions.

• Capital expenditures for 2025 expected at CZK 1.1–1.3bn (approx. 5% of expected revenues).

• Focus on M&LE segment opportunities, disciplined cost control, and new product launches in the US market.

• Board proposes equal split of profit distribution between dividend and share buyback.