Kofola CeskoSlovensko (KOFOL) Q4 2025 earnings summary

Executive summary

• Final 2025 results slightly exceeded preliminary expectations due to lower costs in Q4, with market conditions and revenue trends stable year-over-year.

• Revenue declined 3.0% year-over-year to CZK 10.75 billion, mainly due to regulatory changes and adverse weather impacting demand.

• EBITDA reached CZK 1.82 billion, down 1.9% year-over-year, but still the second-highest in company history.

• Net profit attributable to shareholders was CZK 586.4 million, a slight increase of 8.6% year-over-year.

• Significant acquisitions included Nobilis Tilia (natural cosmetics) and a 49% stake in Alta Fermentación (Latin America), expanding the group’s portfolio and geographic reach.

Financial highlights

• Q4 2025 benefited from non-recurring cost savings, notably zero employee bonuses, improving results by approximately CZK 200 million compared to 2024.

• Gross margin improved to 47.2% from 45.5% year-over-year, driven by lower sweetener and energy costs.

• Free cash flow dropped to CZK 304 million from CZK 741 million, mainly due to higher CAPEX and lower operating cash flow.

• Net debt increased to CZK 5.49 billion (from CZK 3.95 billion), with net debt/EBITDA at 3.02x.

• Dividend proposal for 2025 set at CZK 21 per share, contingent on no significant changes.

Outlook and guidance

• 2026 EBITDA guidance set at CZK 1.9–2.0 billion, reflecting expected cost normalization and commercial improvements.

• Organic revenue growth target for 2026 is 4%, with total revenue growth (including acquisitions) targeted at 10%.

• Management expects to handle raw material cost increases (notably PET) through savings and price hikes, with no anticipated impact on 2026 annual targets.

• CAPEX for 2026 capped at 10% of EBITDA, dividend payout ratio targeted at 45–50%.

• Net debt/EBITDA target for 2026 is 3.0x, with a long-term target of 2–2.5x.