Ceska zbrojovka ups net profit by 54% to Kc587.9m in H1

Prague/Uhersky Brod, South Moravia, Sept 29 (CTK) - Holding CZG - Ceska zbrojovka Group SE arms manufacturer upped H1's revenues by 40.6 percent yr/yr to Kc4.7bn and its net profit soared by 54 percent to Kc587.9m, according to unaudited consolidated results, CZG representatives told CTK in a press release today.

The business performance was influenced by higher arms sales in the USA, Africa and Asia. The acquisition of company Colt and its revenue consolidation affected CZG's overall results as of May 21, said the group.

H1 was another record period, said CZG president and board chairman Jan Drahota.

"Demand for our products stays high and goes beyond our production capacity at the moment," he said.

"We have a strong position on the path towards creating long-term sustainable values for staff, customers, trading partners, shareholders and the entire company," Drahota added.

CZG sold 304,322 weapons in the Jan-June period, which was an annual rise of 33.3 percent.

US sales made up 62.5 percent of the H1 figure, European sales except Czechia accounted for 10.7 percent and Czech sales made up 2.9 percent of the overall figure. African exports accounted for 10.5 percent, Asian for 6.1 percent, Canadian for 3.3 percent, and sales in other countries constituted 4 percent of the Jan-June figure.

EBITDA (earnings before interest, taxes, depreciation and amortisation) indicator was 12.5 percent higher yr/yr at Kc984.1m largely thanks to sales outside Europe.

CZG's management expects the group's revenues to range between Kc10.34bn and Kc10.64bn this year, with EBITDA projected at between Kc1.99bn and Kc2.19bn.

Apart from Ceska zbrojovka, the group includes Colt Manufacturing Company, Colt Canada Corporation, CZ-USA, Brno Rifles, 4M Systems and CZ Export Praha. It has a minority stake in Spuhr i Dalby, a Swedish manufacturer of optical mounting solutions for arms.

The group has a 2,000-strong workforce in Czechia, the USA, Canada and Germany.

CZG is 81.2 percent owned by Ceska zbrojovka Partners SE, and the remainder are publicly traded shares.

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