Kofola CeskoSlovensko (KOFOL) Q1 2025 earnings summary

Executive summary

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

• Net loss for Q1 2025 was CZK 77.0 million, compared to a net profit of CZK 283.9 million in Q1 2024, driven by increased costs and lower sales volumes.

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

Financial highlights

• EBITDA decreased by about CZK 100 million year-over-year, with half attributed to the sugar tax and pre-stocking effects in Slovakia.

• Gross margin declined to 41.2% for Q1 2025, mainly due to lower volumes and higher fixed cost share.

• Net debt increased to CZK 4.58 billion, partly from higher working capital, CAPEX, and lower Q1 EBITDA.

• Selling, marketing, and distribution costs rose 22.8%, mainly due to brewery rebranding and higher logistics expenses.

Outlook and guidance

• Full-year 2025 EBITDA guidance is CZK 1.8–2.0 billion, with revenue growth targeted at 3%, contingent 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.

• Revenue and EBITDA guidance exclude potential acquisitions, such as ASO Vending.

• Cost-saving initiatives and budget freezes are in place to react to further headwinds.