Czech Brand Loyalty: Sales of Kofola Remain Buoyant Throughout Pandemic
Despite the intensive market constraints throughout 2020 due to the coronavirus pandemic, the Kofola Group’s sales reached CZK 1.03 billion in 2020, a drop of just 3.7% from the previous year. The company’s success comes from flexibility, and successful adaptation to anti-epidemic measures in the gastronomy sector. Photo credit: Freepik / Illustrative photo.
Czech Rep., Feb 10 (BD) – Despite the intensive market constraints throughout 2020 due to the coronavirus pandemic, the Kofola Group’s sales in 2020 exceeded expectations. According to preliminary economic results, the group’s sales for 2020, according to the EBITDA indicator (earnings before interest, taxes, depreciation, and amortization), reached CZK 1.03 billion, a year-on-year drop of just 3.7%. The relatively low decline in sales results from the group’s acquisition of Ondrášovka and Korunní mineral waters, which contributed to Kofola’s growth in the retail market.
“Before the end of the year, we estimated an EBITDA indicator of between CZK 950 million and one billion. The fact that we closed the year better is due to the use of a short release at the beginning of December, good working capital conditions and our great cost discipline at the end of the year,” said Jannis Samaras, CEO of the Kofola Group.
The success of Kofola in 2020 also results from flexibility from the company’s management in a time of intensive market restrictions, as well as adaptation of brands’ marketing and sales activities to the situation. “The coronavirus pandemic caused us a loss of approximately CZK 280 million, which we managed to successfully compensate in summer, as well as the benefits we received from Ondrášovka and Korunní. In total, we lost approximately CZK 90 million in EBITDA compared to 2019,” added Samaras.
“We expect that 2021 will again see many restrictions on the gastronomy sector. We must therefore be flexible again. Unlike 2020, however, we are much better prepared. We already have experience with lockdowns, we have adjusted the cost structure and we expect synergies from the integration of Ondrášovka and Korunní,” added Martin Pisklák, CFO of the Kofola Group.