KOFOLA ČESKOSLOVENSKO A.S.

3M 2023

(unaudited)

INTERIM REPORT

A-0

TABLE OF CONTENTS

Table of contents

A.

INTERIM REPORT

A-0

BUSINESS OVERVIEW AND OTHER MATTERS

A-2

1.1.

Business overview

A-2

B.

CONSOLIDATED FINANCIAL STATEMENTS

B-0

CONSOLIDATED FINANCIAL STATEMENTS

B-1

1.1.

Consolidated statement of profit or loss

B-1

1.2.

Consolidated statement of other comprehensive income

B-2

1.3.

Consolidated statement of financial position

B-3

1.4.

Consolidated statement of cash flows

B-4

1.5.

Consolidated statement of changes in equity

B-5

GENERAL INFORMATION

B-7

2.1.

Corporate information

B-7

2.2.

Group structure

B-9

SIGNIFICANT ACCOUNTING POLICIES

B-10

3.1.

Statement of compliance and basis of preparation

B-10

3.2.

Functional and presentation currency

B-10

3.3.

Foreign currency translation

B-10

3.4.

Consolidation methods

B-11

3.5.

Accounting methods

B-11

3.6.

New and amended standards adopted by the Group

B-11

3.7.

Significant estimates and key management judgements

B-12

3.8.

Standards issued but not yet effective

B-12

3.9.

Approval of consolidated financial statements

B-12

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

B-13

4.1.

Segment information

B-13

4.2.

Revenue

B-17

4.3.

Expenses by nature

B-17

4.4.

Other operating income

B-18

4.5.

Other operating expenses

B-18

4.6.

Finance income

B-18

4.7.

Finance costs

B-19

4.8.

Income tax

B-19

4.9.

Earnings per share

B-19

4.10.

Property, plant and equipment

B-20

4.11.

Intangible assets

B-20

4.12.

Bank credits and loans

B-20

4.13.

Legal and arbitration proceedings

B-21

4.14.

Related party transactions

B-22

4.15.

Financial instruments

B-23

4.16.

Ukraine crisis

B-24

4.17.

Subsequent events

B-24

Kofola ČeskoSlovensko Group

A-1

Interim report 3M23

Table of contents

1. BUSINESS OVERVIEW AND OTHER MATTERS

1.1. BUSINESS OVERVIEW

In the following sections of chapter 1, a reconciliation between reported and adjusted financial statements is presented, there are also comments in relation to the consolidated statement of financial position and consolidated statement of cash flows. A dividend policy is provided too. Business results are commented within the investor presentation which can be found on our webpages at following link http://investor.kofola.cz/en/investor-2/reports-and-presentations/investor-presentations/.

The description of financial performance and financial position of Kofola Group should be read along with the financial statements and with other financial information contained in the attached consolidated financial statements. The Board of Directors is presenting and commenting on the consolidated financial results adjusted for one-off events.

1.1.1 ADJUSTED CONSOLIDATED FINANCIAL RESULTS

Adjusted consolidated financial results

3M23

One-off

3M23

adjustments

adjusted

CZK´000 000

CZK´000 000

CZK´000 000

Revenue

1,712.4

-

1,712.4

Cost of sales

(997.2)

-

(997.2)

Gross profit

715.2

-

715.2

Selling, marketing and distribution costs

(508.6)

-

(508.6)

Administrative costs

(140.9)

-

(140.9)

Other operating income/(costs), net

(51.4)

70.0

18.6

Operating profit/(loss)

14.3

70.0

84.3

Depreciation and amortisation

135.3

(1.4)

133.9

EBITDA

*149.6

68.6

**218.2

Finance income/(costs), net

(26.6)

-

(26.6)

Income tax

(23.3)

-

(23.3)

Profit/(loss) for the period

(35.6)

70.0

34.4

- attributable to owners of Kofola ČeskoSlovensko a.s.

(34.9)

70.0

35.1

  • EBITDA refers to operating profit/(loss) plus depreciation and amortisation.
  • Adjusted EBITDA refers to EBITDA adjusted for the effects of events and transactions that are non-recurring, extraordinary or unusual in nature, including in particular results from the sale of non-current assets and financial assets, costs not arising from ordinary operations, such as those associated with the impairment of property, plant and equipment, financial assets, goodwill and intangible assets, relocation costs and the costs of Group layoffs.

The result of the Kofola Group for the 3-month period ended 31 March 2023 was affected by the following one-off items: In Other operating income/(costs), net:

  • Impairment of CZK 69.4 million in relation to plant Grodzisk Wielkopolski (Fresh & Herbs segment).
  • Net costs connected with the closed Grodzisk Wielkopolski plant of CZK 0.5 million (Fresh & Herbs segment).
  • Advisory costs of CZK 0.4 million (CzechoSlovakia and Adriatic segment).
  • Net gain on sold items of Property, plant and equipment of CZK 0.3 million recognized in all business segments.

Kofola ČeskoSlovensko Group

Interim report 3M23

Business overview and other matters

1. BUSINESS OVERVIEW AND OTHER MATTERS

Adjusted consolidated financial results

3M22

One-off

3M22

adjustments

adjusted

CZK´000 000

CZK´000 000

CZK´000 000

Revenue

1,505.9

-

1,505.9

Cost of sales

(909.7)

-

(909.7)

Gross profit

596.2

-

596.2

Selling, marketing and distribution costs

(501.6)

-

(501.6)

Administrative costs

(130.4)

-

(130.4)

Other operating income/(costs), net

0.6

(0.2)

0.4

Operating profit/(loss)

(35.2)

(0.2)

(35.4)

Depreciation and amortisation

149.3

(2.1)

147.2

EBITDA

*114.1

(2.3)

**111.8

Finance income/(costs), net

(62.9)

-

(62.9)

Income tax

(7.6)

0.3

(7.3)

Profit/(loss) for the period

(105.7)

0.1

(105.6)

- attributable to owners of Kofola ČeskoSlovensko a.s.

(103.4)

0.1

(103.3)

  • EBITDA refers to operating profit/(loss) plus depreciation and amortisation.
  • Adjusted EBITDA refers to EBITDA adjusted for the effects of events and transactions that are non-recurring, extraordinary or unusual in nature, including in particular results from the sale of non-current assets and financial assets, costs not arising from ordinary operations, such as those associated with the impairment of property, plant and equipment, financial assets, goodwill and intangible assets, relocation costs and the costs of Group layoffs.

The result of the Kofola Group for the 3-month period ended 31 March 2022 was affected by the following one-off items: In Other operating income/(costs), net:

  • Costs connected with the support provided to parties impacted by the Ukraine war of CZK 0.9 million (CzechoSlovakia segment).
  • Net costs connected with the closed Grodzisk Wielkopolski plant of CZK 0.8 million (Fresh & Herbs segment).
  • Restructuring costs of CZK 0.3 million (Fresh & Herbs segment).
  • Advisory costs - CzechoSlovakia segment incurred costs of CZK 0.1 million.
  • Costs arising on integration of acquired subsidiaries of CZK 0.1 million (CzechoSlovakia segment).
  • Net gain on sold items of Property, plant and equipment of CZK 2.4 million recognized in all business segments (mainly CzechoSlovakia).

Adjusted consolidated financial results

3M23

3M22

Change

Change

CZK´000 000

CZK´000 000

CZK´000 000

%

Revenue

1,712.4

1,505.9

206.5

13.7%

Cost of sales

(997.2)

(909.7)

(87.5)

9.6%

Gross profit

715.2

596.2

119.0

20.0%

Selling, marketing and distribution costs

(508.6)

(501.6)

(7.0)

1.4%

Administrative costs

(140.9)

(130.4)

(10.5)

8.1%

Other operating income/(costs), net

18.6

0.4

18.2

4,550.0%

Operating profit/(loss)

84.3

(35.4)

119.7

338.1%

EBITDA

218.2

111.8

106.4

95.2%

Finance income/(costs), net

(26.6)

(62.9)

36.3

(57.7%)

Income tax

(23.3)

(7.3)

(16.0)

219.2%

Profit/(loss) for the period

34.4

(105.6)

140.0

132.6%

- attributable to owners of Kofola ČeskoSlovensko a.s.

35.1

(103.3)

138.4

134.0%

Kofola ČeskoSlovensko Group

Interim report 3M23

Business overview and other matters

1. BUSINESS OVERVIEW AND OTHER MATTERS

1.1.2 FINANCIAL POSITION

ASSETS

Property, plant and equipment decreased as a net result of additions of CZK 92.9 million, depreciation charge of CZK 119.0 million, downward FX revaluation of foreign Group entities' assets of CZK 37.7 million and impairment charge of CZK 69.4 million in relation to closed Grodzisk Wielkopolski plant (downward revaluation due to long-term unsuccessful sale effort). The most significant additions realized by the Group in 3M23 were represented by investments into the production machinery and returnable packages.

Intangible assets decreased mainly as a result of amortization charge of CZK 18.2 million.

Other non-current assets contain mainly prepayments, deferred expenses and receivable from derivatives. Decrease is attributable mainly to revaluation of derivatives (by CZK 20.9 million).

Trade and other receivables increased mainly due to higher trade receivables (by CZK 60.8 million) which was driven by increased sales.

Inventories increased due to higher sales and also due to increased material prices.

LIABILITIES

Increase of the Bank credits and loans is a result of the regular loan repayment (CZK 45.5 million), overdraft and CAPEX tranche drawing (CZK 86.7 million) and downward FX revaluation (CZK 50.7 million).

Lease liabilities increased mainly as a result of vehicles lease additions.

The Group´s provisions decreased mainly due to payment of employee bonuses.

Trade and other payables decreased mainly due to lower trade payables (CZK 203.9 million), trade payables balance is comparable with balance as of 31 March 2022.

The Group's consolidated net debt (calculated as total non-current and current liabilities relating to credits, loans, leases and other debt instruments less cash and cash equivalents) amounted to CZK 3,423.5 million as at 31 March 2023, which represents an increase of CZK 128.5 million. Increase is influenced by the net cash outflow in the first quarter which is a standard situation because the first quarter has the smallest weight in the Group's annual results.

The Group´s consolidated net debt / Adjusted LTM EBITDA as at 31 March 2023 was of 2.8 (as of 31 December 2022: 3.0).

1.1.3 CASHFLOWS

Cash flows from operating activities were higher by CZK 91.2 million mainly due to better operating result.

Cash flows from investing activities were higher by CZK 23.9 million mainly due to lower CAPEX in 3M23 (CZK 48.0 million in 3M23 as compared to CZK 75.3 million in 3M22).

Cash flows from financing activities were lower by CZK 134.8 million mainly due to lower net loan drawings by CZK 129.2 million in 3M23.

From the total balances in relation to repayments and drawings of loans and bank credits presented within the Consolidated statement of cash flows, amount of CZK 20.9 million represents the drawing of Group's overdraft (in 3M22: drawing of CZK 287.2 million).

1.1.4 DIVIDEND POLICY

On 21 October 2021, the Board of Directors of the Company approved the Company's dividend policy for the periods of 2021 to 2023. The intention of the Board of Directors is to maintain the current trend and distribute approximately CZK 300 million to shareholders in each financial year. This currently represents approximately CZK 13.46 per share before tax. The realisation of this intention is conditional on sufficient funds being available for distribution (distributable resources) without jeopardising the Company's financial stability.

Kofola ČeskoSlovensko Group

Interim report 3M23

Business overview and other matters

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Kofola CeskoSlovensko AS published this content on 01 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 June 2023 15:12:05 UTC.