CSG increased its revenue by two thirds in 2023, and its EBITDA more than doubled

The CSG industrial and technological group has announced its audited consolidated financial results for 2023. Its revenue for 2023 amounted to 1.73 billion EUR, which is a year-on-year growth of 71%. EBITDA amounted to 439 million EUR, and it has doubled versus last year. The group’s net profit for 2023 came to 210 million EUR, that is, 49% more than in the previous year. CSG thus has another record-breaking year behind it, in which it grew significantly in all key indicators.

We can supplement this basic data as follows: over half of CSG’s production (51%) was bound for European countries (excluding Ukraine). Two thirds of CSG’s income was generated in NATO member state, one third in the rest of the world (primarily in Ukraine, Indonesia, Vietnam and Morocco).

It follows from this that over 60% of the group’s revenue was generated in the CSG Defence division, which encompasses companies foused on the production of ground military equipment and large-caliber munitions. A fifth of its revenue was generated in the small-caliber ammunition division (CSG Ammo+). We must also add that the defence industry had over a 70% share in the company’s revenues, and this due to the fact that defence orders were executed in the CSG Aerospace, CSG Ammo+, and CSG Business Projects divisions as well.

CSG’s growth in 2023 was driven primarily by two strategic sectors in which we have been active for a long time, specifically the production of large-caliber munitions and the production of ground military equipment. In both of these cases, this is healthy, organic growth, which we achieved due to the strength of demand, but also thanks to our investments into expanding production capacities and increasing labor productivity,

Zdeněk Jurák

Member of the Board of Directors and Chief Financial Officer of CSG

Vybrané ukazatele z hospodářských výsledků CSG

Last year, the economic activities of Czechoslovak Group (“CSG” or “the Group”) were influenced yet again by growing demand for most of the Group’s flagship products. This mainly manifested in the segments involved in defence-industry manufacturing (Defence), small-caliber ammunition production (Ammo+) and aviation products and services. Last year’s developments were marked by the continuing war in Ukraine and conflicts in the Middle East.

The continuing Russian aggression in Ukraine has resulted in a distinct increase in defence expenditures in the majority of European countries, especially in eastern and northern Europe. This is accompanied by increased pressure to expand production capacities and—in light of the high consumption of large-caliber munitions and ground equipment especially—the need for faster restocking of materiel and equipment in the arsenals of NATO member states. Many European countries, including the Czech Republic, are indicating further increases of defence expenditures within this context.

CSG has responded to market pressure with major investments into business development—above all into strengthening its production capacities and increasing productivity, promoting technological innovations, developing new products, and strengthening its financial position via debt financing and bond emissions.

New Acquisitions and Opportunities

In December 2023, CSG announced the acquisition of a majority share in Armi Perazzi, an Italian maker of luxury shotguns for elite sportsmen and hunters. Despite its relatively limited production, the Perazzi brand enjoys high prestige in the world shooting community; it is thus a welcome enrichment of CSG’s portfolio of top-rate, hand-crafted brands based on precision engineering, gathered into its CSG Business Projects division.This division includes members such as Elton hodinářská, the maker of Prim mechanical watches, and Karbox, a specialized manufacturer of superstructures, containers, and other logistics technologies.

In 2023, CSG announced that it had reached an agreement on the purchase of the Sporting Products division (now named Kinetic Group) from Vista Outdoor (NYSE: VSTO). Kinetic is a leading global manufacturer of small-caliber ammunition, headquartered in Anoka, Minnesota. CSG hopes that this acquisition will bring mutual broad synergy to its business opportunities on international markets and an overall of the Group’s presence on the American market. This transaction in the amount of EUR 1.91 billion is subject to approval by the corresponding regulators and shareholders of Vista Outdoor.

You can download the full version of the press release here.