Colt CZ Group SE increased its revenues to CZK 14.9 billion in 2023
The Colt CZ Group's revenue in 2023 reached 14 855.6 million CZK. Sales in the armed forces segment in particular recorded a significant increase. The sales level was affected by the conversion of foreign currencies into the Czech crown, the time-consuming process of granting export licenses and the decline of some product segments on the commercial market in the United States. Due to the increase in the proportion of sales in the Armed Forces segment, the seasonality of sales increased in the quarter. The last quarter of 2023 was the most successful quarter historically in terms of sales.
"Last year was the second most successful year in the history of our Group. We significantly increased our share of sales to the armed forces, acquired Swiss ammunition manufacturer swissAA Holding AG and announced the signing of an agreement with CBC Europe to acquire 100% of Sellier & Bellot. However, it has to be said that in terms of economic results, last year ended behind my original expectations and plans. We are constantly working on the modernization of our product portfolio and we expect a significant increase in our performance for 2024," commented Jan Drahota, CEO and Chairman of the Board of Colt CZ Group. "In view of the results achieved, the Company's Board of Directors has decided to propose to the General Meeting a dividend of CZK 30 per share," added Jan Drahota.
Adjusted EBITDA adjusted for extraordinary items amounted to CZK 3,048.4 million for 2023. Net profit after tax in 2023 totalled CZK 2,042.5 million, which is 9.4% lower than in 2022. Adjusted net profit after tax in 2023 totalled CZK 2,049.7 million, 0.4% more than in 2022. The number of weapons sold in 2023 decreased by 10.4% compared to the same period in 2022, reaching 621 thousand units sold, mainly due to a decrease in demand in the US commercial market. The Company's Board of Directors will propose to the General Meeting a dividend payment of C$30 per share with the option of a cash payment or a dividend in shares.
Outlook for 2024
The outlook for the year will continue to be affected by a number of external factors that impacted last year's results. These include primarily demand developments in global markets, the US and the Czech Republic (including in the context of the ongoing conflict in Ukraine), continued inflationary pressures on the cost side and the impact of the translation of the US dollar and euro into the Czech koruna. In addition, the outlook for 2024 results will be impacted by the expected consolidation of the pending acquisition of Sellier & Bellot, for which the Colt CZ Group is currently relying on management estimates obtained during due diligence. On this basis, the outlook will be refined during 2024.
The aforementioned acquisition of Sellier & Bellot is proceeding within the agreed timetable. In February this year, the General Meeting of Colt CZ Group approved a capital increase through a new issue of Colt CZ ordinary shares, which will lead to the acquisition of the selling company CBC's share in the share capital of Colt CZ Group in the approximate amount of 27-28% upon completion of the acquisition. The transaction is subject to regulatory approvals in various countries. A number of these approvals have already been obtained and the acquisition is expected to be completed by the end of the first half of 2024.
