COLT CZ GROUP SE
FINANCIAL RESULTS Q1 2024
INVESTOR PRESENTATION
LEGAL DISCLAIMER
I M P O R T A N T - Y O U M U S T R E A D T H E F O L L O W I N G B E F O R E C O N T I N U I N G
This presentation (the "Presentation") has been prepared by Colt CZ Group SE, with its registered office at náměstí Republiky 2090/3a, Nové Město, 110 00 Praha 1, Identification Number 291 51 961, registered in the Commercial Register maintained by the Municipal Court in Prague, Section H, Insert 962 (the "Colt CZ"). By attending the meeting where this Presentation is made or by reading the Presentation document, you agree to be bound by the following terms and conditions.
The Presentation has been prepared with due care. However, certain inconsistencies or omissions might have appeared herein. Therefore, it is recommended that any person intending to undertake any investment decision on any security issued by Colt CZ or any member of its group (the "Group") shall only rely on information released as an official communication by Colt CZ in accordance with the legal and regulatory provisions that are binding for Colt CZ.
Past performance can not be taken as an indication or guarantee of future results, and no representation or warranty, express or implied, is made regarding future performance. Colt CZ does not (i) warrant that the assumptions underlying the forward-looking statements in this Presentation are free from errors, (ii) accept any responsibility for the future accuracy of the opinions expressed in this Presentation, or (iii) undertake any obligation to update the statements in this Presentation to reflect subsequent events. The forward-looking statements in this Presentation are made only as of the date hereof. Neither delivery of this Presentation nor any further discussions between Colt CZ and you shall, under any circumstances, result in any implication that there has been no change in Colt CZ affairs since such date.
Forward-looking statements, including statements relating to expectations regarding future financial results, give no guarantee or assurance that such results will be achieved. Expectations of the Colt CZ management are based on present knowledge, awareness and/or views of the management members and are dependent on many factors, which may cause the actual results that Colt CZ will achieve may differ materially from those discussed in this Presentation. Many such factors are beyond the present knowledge, awareness and/or control of Colt CZ, or cannot be predicted. None of the Group, Colt CZ or its directors, managers, advisers or representatives of such persons makes any representation or warranty, expressed or implied, as to (i) the fairness, accuracy, completeness or correctness of this Presentation, (ii) the sufficiency of this Presentation for your purposes. or (iii) the appropriateness of this Presentation for any purpose other than that for which it was intended. Nothing contained herein is or should be relied upon as a promise or representation, whether as to the past or the future.
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This Presentation was prepared for information purposes only and is neither a purchase nor sale offer nor a solicitation of a n offer to purchase or sell any securities or financial instruments or an invitation to participate in any commercial venture. This Presentation is neither an offer nor an invitation to purchase or subscribe for any securities in any jurisdiction, and no statements contained herein may serve as a basis for any agreement, commitment or investment decision, or may be relied upon in connection with any agreement, commitment or investment decision.
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AGENDA AND TODAY'S PRESENTERS
A G E N D A
1 Q1 2024 AT A GLANCE
- FINANCIAL HIGHLIGHTS
- ACQUISITION OF SELLIER & BELLOT
- APPENDIX
P R E S E N T E R S
JAN DRAHOTA
Chairman of the Board of Directors CEO of Colt CZ Group SE
JAN ZAJÍC
Member of the Board of Directors
CEO of Česká zbrojovka a.s.
RADEK MUSIL
CEO of Sellier & Bellot a.s.
JANA MATOUŠKOVÁ
Head of Group Finance
Colt CZ Group SE
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COLT CZ AT A GLANCE
R E V E N U E S
CZK 3,667.1 m
- 21.7% vs Q1 2023
ADJUSTED NET PROFIT
CZK 359.9 m
- 47.8% vs Q1 2023
ADJUSTED EBITDA
CZK 488.4 m
- 28.5% vs Q1 2023
ADJUSTED EPS 1
CZK 10
- 50% vs Q1 2023
2024 FULL YEAR GUIDANCE CONFIRMED SELLIER & BELLOT ACQUISITION COMPLETED
Notes: Financial results are unaudited
1- basic EPS based on adjusted net profit
REVENUES - SIGNIFICANT INCREASE OF SALES TO M&LE CUSTOMERS
R E V E N U E B R E A K D O W N 1 B Y G E O G R A P H Y | B R E A K D O W N B Y S E G M E N T 1 | |
54%
48%
16% 17% | 13% 11% | |||
11% | ||||
7% | 4% 4% | 7% | ||
3% | 2% 1% | |||
USA Czech Rep. Canada | Europe2 | Asia | Other | Africa |
30% | |||
Q1 2023 | 53% | Q1 2024 | 47% |
70%
Q1 2023 | Q1 2024 | Commercial | M&LE | ||||
C O M M E N T S
Share of military and law enforcement sales up, in line with Company´s expectations
Military and law enforcement sales influenced by consolidation of swissAA revenues
Notes: Financial results are unaudited
5
1 - In percentage of total revenues
2 - Europe excluding Czech Republic
Q1 2024 WAS THE STRONGEST FIRST QUARTER IN GROUP'S HISTORY
B R E A K D O W N B Y
P R O D U C T 1 , 2
In CZK m
6% | 8% | |||||
7% | ||||||
3% | ||||||
Q 1 2 0 2 3 | Q 1 2 0 2 4 | |||||
91% | 85% | |||||
Firearms | Others | Ammunition | ||||
B R E A K D O W N B Y
U N I T S S O L D
In '000 units
-5.5% | |||
148 | 140 | ||
92 | 82 | ||
57 | 58 | |||
Q1 2023 | Q1 2024 | |||
Long guns | Short guns | |||
Q U A R T E R L Y R E V E N U E S
S E A S O N A L I T Y
In CZK m
4,945 | |||||
4,370 | |||||
3,554 | 3,496 | 3,848 | 3,667 | ||
3,171 | |||||
3,013 | 3,050 |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 |
2022 | 2022 | 2022 | 2022 | 2023 | 2023 | 2023 | 2023 | 2024 |
C O M M E N T S
Q1 2024 was the strongest first quarter in terms of revenues ever despite the impact of quarterly seasonality
Q2 2024 is expected to be even stronger (see updated guidance page 10) due to confirmed deliveries of large M&LE contracts Share of ammunition sales up due to the consolidation of swissAA, but still negligible EBITDA impact
Notes: Financials are unaudited
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1 - In percentage of total revenues
2 - Others include tactical accessories, optical mounting, services, licenses and explosives
Q1 2024 PROFITABILITY AFFECTED BY ONE-OFF EFFECT
A D J U S T E D N E T P R O F I T 1
In CZK m
-47.7%
688
128
360
70
Q1 2023 | Q1 2024 |
Adjustments1 | Net profit |
A D J U S T E D E A R N I N G S P E R S H A R E 2
In CZK
-50% | ||||||||
20 | ||||||||
3 | ||||||||
10 | ||||||||
17 | 1 | |||||||
9 | ||||||||
Q1 2023 | Q1 2024 | |||
Adjustments1 | EPS | |||
C O M M E N T S
Q1 2024 profitability (EBIT, EBITDA and NI) decreased by marketing/ product campaigns and discounts in the USA to reignite CZ US sales Technical problems with several Colt SKU's3 also negatively impacted profitability of Q1 (already resolved)
Additional operational costs in swissAA with a negative impact on EBITDA margin
Q1 2024 net profit down due to lower financial income if compared with Q1 2023 at the back of FX rates developments
Notes: Financial results are unaudited
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1 - Full breakdown of adjustments available on page 22 2 - Calculation based on the concept of Basic EPS
3 - Stock keeping unit
CAPEX IN LINE WITH 2024 GUIDANCE
C A P I T A L E X P E N D I T U R E S 1
CZK m/%
4.8% | 5.9% | 4.7% | 6.2% | 5.0% | Guidance2 | ||
≤ 5.0% | |||||||
C A P E X G E O G R A P H I C A L S P L I T
In CZK m
+19% |
183 |
924
633680
331
1,000-1,200
183
154 | 46 |
46 | |
66 | |
108 | |
71 |
FY 2020 | FY 2021 | FY 2022 | FY 2023 | Q1 2024 | FY 2024e | ||
CAPEX | CAPEX/Revenues | ||||||
C O M M E N T S
Q1 2023 | Q1 2024 | |||||
Czech Republic | North America | Other | ||||
Q1 2024 CAPEX is in line with FY CAPEX guidance ( i.e. less than 5% of revenues) Additional capital expenditures in the North America and swissAA production in Q1 2024 FY guidance for CAPEX 2024 with Sellier & Bellot included
Notes: Financial results are unaudited
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1 - Corresponds to the paid acquisition of non-current assets
2 - Guidance is based on the management expectations as of the date of presentation
TOTAL INDEBTEDNESS AFFECTED BY THE ADVANCE PAYMENT FOR S&B ACQUISITION IN 12/2023
E X P E C T E D D E B T M A T U R I T Y P R O F I L E | N E T F I N A N C I A L D E B T 1 & N E T L E V E R A G E R A T I O 2 , 3 | |
( I N C . A C Q U I S I T I O N F I N A N C I N G ) | ||
In CZK bn/EUR m | In CZK m |
EUR m | 5,000 | CZK bn | 3,23 | |||||||||||||
200 | 5 | |||||||||||||||
184 | 2,80 | |||||||||||||||
150 | 4 | |||||||||||||||
3 | 2,14 | |||||||||||||||
100 | 1,998 | 1,929 | 1,40 | 1,20 | 1,80 | |||||||||||
2 | 8,019 | |||||||||||||||
7,465 | ||||||||||||||||
51 | 51 | 51 | 51 | |||||||||||||
2 692 | ||||||||||||||||
50 | 2 685 | |||||||||||||||
31 | 1 | 3 770 | 3 670 | |||||||||||||
20 | ||||||||||||||||
0 | 2024 | 2025 | 2026 | 2027 | 2027 | 2028 | 2028 | 2029 | 2030 | 0 | FY 2021 | FY 2022 | FY 2023 | Q1 2024 | ||
EUR amort 29 | EUR loan 29 | CCZ VAR27 | CCZ VAR29 | CCZ VAR30 | Net debt | Advance payment to S&B | Net leverage ratio | Net leverage ratio adjusted |
C O M M E N T S
Net financial debt jump at the end of 2023 due to prepayment of S&B acquisition
The combined pro-formapost-acquisition net leverage is expected below 3x Net Debt/EBITDA
Cash generative business of both companies will allow leverage reduction going forward, with expected acquisition loan repaym ent by 2029
Notes: Financial results are unaudited
9
1 - Net financial debt is defined as long-term and short-term bonds, bank loans and borrowings and finance lease liabilities (non-current and current), less cash and cash equivalents, less other current financial assets (marketable securities) 2 - Net leverage ratio is defined as the ratio of net financial debt at the end of the period to LTM unadjusted EBITDA
3 - Net Leverage ration 1.8. is adjusted by advance payment of acquisition of Sellier & Bellot
COMPANY REMAINS CONFIDENT ON THE 6M 2024 PERFORMANCE
6 M G U I D A N C E
In CZK m
6,860
1,464
8,400-8,600
1,450-1,600
9,000-9,200
1,650-1,800
11,800-12,000
2,600-2,800
HY 2023 | HY 2024e Colt CZ without S&B | HY 2024e Colt CZ post acquisition | HY 2024e Colt CZ pro forma | |||
S&B consolidated since May 16, 2024 | S&B consolidated full HY | |||||
Revenues | Adjusted EBITDA | |||||
C O M M E N T S
We expect a high quarterly seasonality of revenues in 2024, even higher than the previous years
Gradual sales ramp up from the first months of the year and a very strong Q2 2024 performance
Q4 2024 is expected to be the strongest quarter, contributing to app. 30% of guidance overall
Notes: Financial results are unaudited
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Guidance is based on the management expectations as of the date of presentation
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Colt CZ Group SE published this content on 23 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 May 2024 05:34:04 UTC.