Czech gunmaker Colt CZ says 2023 revenue up 1.8% on Q4 sales

Colt CZ SE

26/03/2024 09:53

PRAGUE, March 26 (Reuters) - Czech gunmaker Colt CZ
Group  CZG.PR  on Tuesday reported a 1.8% year-on-year rise in
2023 revenue, helped by strong sales in the fourth quarter.
    Revenue rose to 14.86 billion crowns ($638.5 million) while
adjusted earnings before interest, tax, depreciation and
amortisation (EBITDA) fell 9.4% to 3.05 billion crowns, in line
with the company's outlook.
    Adjusted net profit fell 10.1% to 2.05 billion crowns in
2023, and the company proposed an unchanged 30 crown per share
dividend.
    Colt CZ expects revenue and adjusted EBITDA to rise in 2024,
it said. 
    It forecast revenue to rise up to 19.8% on a standalone
basis and by up to 48.1% when factoring the expected
contribution of its planned acquisition of ammunition maker
Sellier & Bellot.
    If the deal completes, revenue should reach a range of 20.0
billion to 22.0 billion crowns and adjusted EBITDA should be in
a range of 4.3 billion to 4.7 billion crowns.
    Firearm sales fell 10.4% last year, largely due to lower
demand in the key U.S. market, Colt CZ said. The U.S. market
contributed to 42% of Colt CZ's revenue in 2023. 
    The group said it lifted sales to its military and law
enforcement (M&LE) customers last year.
    Fourth-quarter revenue jumped to 4.95 billion crowns, up 13%
year-on-year.
    "According to the fourth quarter it looks as though demand
in the commercial market in the United States, which is a key
sector for Colt CZ, is starting to recover from weaker demand,"
Komercni Banka analyst Bohumil Trampota said.
    Shares in Colt CZ ticked 0.2% lower in early trade on
Tuesday and are up over 10% in the past year.
    
($1 = 23.2720 Czech crowns)

 (Reporting by Jason Hovet; editing by Miral Fahmy)
 ((jason.hovet@thomsonreuters.com;))