Kofola CeskoSlovensko (KOFOL) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue increased 2% year-over-year to CZK 2.09 billion, but EBITDA dropped 37% to CZK 162.7 million, mainly due to the sugar tax in Slovakia, unfavorable weather, and earlier marketing spend.

• Net loss for Q1 2025 was CZK 77.0–82.4 million, compared to a profit or smaller loss in Q1 2024, driven by higher costs and lower sales volumes.

• The group maintains market leadership in soft drinks in its core markets, with 88% of revenue from countries where it holds a top-two position.

Financial highlights

• Gross margin declined to 41.2–41.3% in Q1 2025 from 42.6–42.8% in Q1 2024, as lower volumes increased the share of fixed costs.

• Selling, marketing, and distribution costs rose 22.8%, with marketing expenses around 5% of revenues and earlier spend in 2025.

• Q1 CAPEX was approximately CZK 240 million, about a quarter of the full-year plan of over CZK 1 billion.

• Net debt increased to CZK 4.58 billion, with net debt/adjusted LTM EBITDA at 2.61x, up from 2.14x at year-end 2024.

Outlook and guidance

• Full-year 2025 EBITDA guidance is CZK 1.8–2.0 billion, with revenue growth targeted at 3% and maximum CAPEX at 60% of EBITDA; achieving guidance depends on a strong summer season.

• Dividend per share is expected to be at least CZK 13.5, with a Board proposal of CZK 21 per share for 2024.

• Guidance excludes potential acquisitions and is based on the current group structure.

• Management is prepared to implement further cost-saving measures if summer weather is unfavorable.