Kofola CeskoSlovensko (KOFOL) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 results with revenue up 27.5% to CZK 11.08 billion and EBITDA up 47.7% to CZK 1.85 billion, driven by organic growth, acquisitions, and portfolio expansion.

• Net profit rose 76.8% to CZK 601 million, with EPS increasing to CZK 26.82.

• Entered new business segments, including Beers & Ciders, vending, and apple orchards, through acquisitions.

• Demonstrated resilience by restoring production after severe floods, supported by insurance compensation.

• Board approved a dividend policy targeting CZK 300 million annual payout, with a proposed CZK 21 per share for 2024.

Financial highlights

• Revenue increased by CZK 2,391.9 million (27.5%) to CZK 11,082 million, with all segments contributing to growth.

• Adjusted EBITDA rose by CZK 597.6 million (47.7%) to CZK 1,851 million, margin improved to 16.7% from 14.4%.

• Net profit for the period was CZK 601 million, up 76.8% year-over-year.

• Czechoslovakia segment revenue reached CZK 6,848 million (+10.3%), Adriatic CZK 1,681 million (+11.1%), Fresh & Herbs CZK 1,157 million (+19.6%), Beers & Ciders CZK 1,396 million.

• Net debt/EBITDA at 2.14, with net debt rising to CZK 3,954 million due to acquisitions and CAPEX.

Outlook and guidance

• 2025 EBITDA guidance set at CZK 1.9–2.0 billion, with revenue growth target of 3% and maximum CAPEX at 60% of EBITDA.

• Management expects modest growth in 2025 despite headwinds from new sugar taxes in Slovakia and Slovenia, and softer consumer sentiment.

• Dividend per share expected to be at least CZK 13.5; net debt/EBITDA target of 2.1x.

• Focus on water portfolio, premium soft drinks, and innovation in juices and ice tea; Adriatic region to counteract tax and boycott impacts with new product launches.

• Beers & Ciders segment to complete integration and invest in brand refresh and marketing to drive growth.