The Czech company Colt CZ Group SE reported revenues of CZK 16.071 billion for the first three quarters of the year, representing year-on-year growth of 7.3 percent. The group's net profit reached CZK 1.327 billion, almost doubling year-on-year. According to the published unaudited results, the growth was supported by higher ammunition deliveries and the consolidation of Sellier & Bellot. Revenues from ammunition sales increased by 94.2 percent year-on-year to approximately CZK 7.7 billion, while revenues from arms sales fell by 24 percent to CZK 8.4 billion.

Profitability was also strengthened by a higher EBITDA, which rose by 52.5 percent to nearly CZK 3.424 billion in the first nine months. CEO Radek Musil emphasized that despite weaker demand in the US market, the group improved its margins thanks to the performance of the ammunition segment and continued growth in European markets.

In the first three quarters, the holding company sold 415,146 weapons, down 10.4 percent year-on-year. Sales of both long and short weapons declined, with CZ brand products experiencing a milder decline than Colt brand products. The decline in the US was reflected in lower volumes, but Europe strengthened its position. Of the group's total revenues, European markets excluding the Czech Republic accounted for 35.9 percent, the United States for 33.2 percent, and the Czech Republic for 13.2 percent. The remaining shares were accounted for by Canada, Asia, Latin America, Africa, and other regions.

Significant orders confirmed the group's position in Europe and Canada. In September, Česká zbrojovka, a subsidiary of Colt CZ, signed a framework agreement with the Ministry of Defense for the supply of small arms and accessories worth a maximum of CZK 4.26 billion. The contract includes CZ BREN 2 rifles, CZ P-10 C pistols, and CZ GL grenade launchers. In August, the subsidiary Colt Canada won a contract with the Danish Defense Acquisition Organization (DALO) to supply 26,000 C8 MRR carbines.

From January to September, the holding company invested CZK 586 million, which was 10.6 percent less than in the same period last year. The outlook for the year anticipates revenues between CZK 23 and 24.5 billion. In November, the group issued 600,000 bonds with a total nominal value of CZK 6 billion and an annual interest rate of 6.1 percent. Colt CZ remains a major global manufacturer of handguns and ammunition, with more than 4,000 employees at plants in Czechia, the US, Canada, Sweden, Switzerland, and Hungary.

Prepared by foreign office CzechTrade Romania

Source: e15.cz