Czech gunmaker Colt CZ lifts dividend after record revenue

Colt CZ SE

23/03/2023 08:17

PRAGUE, March 23 (Reuters) - Czech gunmaker Colt CZ
Group  CZG.PR  lifted its dividend on Thursday after posting
record revenues for 2022, when a slowdown in its key U.S. market
was offset by higher sales to military customers.
    Revenue rose 36.5% last year to 14.59 billion crowns 
($672.26 million), hitting the upper end of the company's
guidance range. 
    Adjusted earnings before interest, tax, depreciation and
amortisation (EBITDA) rose by 55.2% to 3.37 billion crowns,
beating the company's forecast of 3.3 billion.
    The company completed the takeover of U.S. brand Colt in
2021 as sales in that market were booming, and has used the
acquisition to expand its customer base. But revenue growth in
the United States, which made up almost half of sales in 2022,
slowed to 12%, rising mainly because of Colt's consolidation.
    "We were able to compensate for the relatively significant
decline in the US commercial market by selling our products
mainly to military customers," Chief Executive Officer Jan
Drahota said. 
    The company proposed a 30 crown per share dividend from 2022
net profit, which jumped to 2.03 billion crowns. That was up
from 25 crowns the previous year. Shareholders can choose
between cash or stock in the dividend, Colt CZ said.
    Shares were 1.4% higher in Thursday morning trade, after
earlier touching a more than nine-month high.
    The gunmaker wants to boost its position in the military
segment going ahead, it said.
    The company sees revenue rising in 2023, but is unsure how
much given demand uncertainties and continued cost pressures.
    Under a pessimistic scenario, revenue should rise to
15.1-15.5 billion crowns and adjusted EBITDA would ease a touch
to 3.1-3.3 billion. 
    Under the group's target scenario, revenue would rise more
than 12% to 16.4-16.9 billion crowns this year and adjusted
EBITDA would reach 3.6-3.8 billion crowns.
    ($1 = 21.7030 Czech crowns)

 (Reporting by Jason Hovet
Editing by Mark Potter)
 ((jason.hovet@thomsonreuters.com;))