Kofola Group, which major part is owned by Czech founders, increased consolidated revenues by 19.0% and reduced overhead costs by 3.4%. However, EBITDA decreased by 45.0% due to a high commodity prices.
In the first quarter 2011, Kofola Group experienced high commodity prices. Cost optimization which reduced overheads (logistics, selling and administration) by 3.4% and increase of revenues did not cover the extraordinary high commodity prices which were on the peak. Global markets reported increase of crude oil and sugar prices by 40.0%.
“During the first quarter, we tried to cover the increasing production costs affected by high commodity prices, however, should the trend continues, prices of our products must increase.” - says Jannis Samaras, Chairman of Board of directors and majority shareholder of Kofola Group.
Despite the loss, Kofola Group generated positive cash flow from operations. Additionally, Kofola Group acquired Pinelli. The acquisition agreement was signed three weeks ago. This enlarged our portfolio by energy drinks Semtex and Erektus. In Czech and Slovakia, energy drinks segment is growing and we see big potential in these markets.
However, the Eastern (businesswise one of the most attractive period) was only in April and did not affect our revenues in the first quarter. First quarter shows good sales results mainly in Poland and Russia.
“In Poland, revenues increased by 8.0% mainly due to restructuring process started during autumn 2010.” - says Martin Mateas, Chairman of Board of directors in Hoop Poland (member of Kofola Group).
