WOOD Flash – Kofola: 1Q18 results in line, 2017 DPS increased, planned divestment from Poland
This morning (15 May), Kofola reported its 1Q18 results, before the market opened. On the top line, the company reported CZK 1,434m, up by c.7% yoy and broadly in line with expectations, driven primarily by stronger price/mix growth (+6.1% yoy), while the volumes remained largely flat (+0.6% yoy). The gross margin expanded by 2.6ppts to 37.6%; however, due to 1.8ppts opex/sales ratio expansion, the adjusted EBITDA missed our estimate by 22%, at CZK 97.3m (+23% yoy). Finally, on the bottom line, the company reported a net loss of CZK 67.5m (flat yoy), due to higher finance costs (related to FX losses). In other news, the majority shareholder proposed an increase in DPS from the 2017 earnings to CZK 16.2/share (from CZK 13.5), implying a 100% payout ratio and a 4.2% dividend yield; however, no changes were made to the company’s dividend policy. Additionally, Kofola announced its plans to divest from its Polish unit (HOOP) over the course of 2018E, if management is not able to proceed with material M&A supporting the current brand portfolio.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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