Czechoslovak Group’s revenues rise 71% in 2023 as defence booms

Czechoslovak Group’s revenues rise 71% in 2023 as defence booms
CSG's Morana self-propelled gun howitzer. / bne IntelliNews
By Albin Sybera April 11, 2024

Czechoslovak Group, a regional defence and machinery conglomerate based in Czechia, announced revenue of €1.73bn in 2023 in a record-breaking year, cruising on the back of booming deliveries in the defence industry.

This is a 71% growth year on year, while the group’s Ebitda amounted to €439mn, doubling y/y. The group’s net profit reached €210mn, an increase of 49% y/y.

“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-calibre munitions and the production of ground military equipment,” commented Zdenek Jurak, CSG’s CFO.

CSG noted that 51% of its production went to European countries apart from Ukraine. Two-thirds of CSG’s income was generated in Nato member states, and one-third in the rest of the world, primarily in Ukraine, Indonesia, Vietnam and Morocco.

Over 60% of the group’s revenues were generated in the CSG defence division, which specialises at production of ground military equipment and large-calibre ammunition. One fifth of the revenue was generated in the small-calibre ammunition division (CSG Ammo+). The defence industry had over a 70% share in the company revenues.  

CSG announced several developments in recent weeks, including moving of its headquarters to the Karlin quarter in Prague earlier this month and staff additions to the management.

Former Minister of Interior and ex-Chairman of Social Democrats (now SOCDEM) Jan Hamacek, under whose leadership the party joined the previous populist cabinet of billionaire Andrej Babis and fell out of the parliament in 2021, became CSG’s director for external relations in February.  

CSG is also pursuing the $1.9mn (€1.77mn) acquisition of U.S. Vista Outdoor’s ammunition division, including Arkansas-based Remington Ammunition.

Vista and CSG announced advanced stage of the talks in October and Vista has since moved to split its ammunition brands into The Kinetic Group, which the subject of the planned takeover by CSG.

US-based server reported earlier this week that “the U.S. Federal Trade Commission has cleared the acquisition from an antitrust perspective” and both parties re-filed their joint notice to the Committee on Foreign Investment in the United States for clearance.

“We look forward to successfully closing the acquisition of the Kinetic Group and becoming the steward of such venerable American brands as Federal, CCI, and Remington,” CSG was quoted as saying by  

Slovak and Czech media have also been reporting that CSG is experiencing a surge in activities in Slovakia under the current left-right cabinet of populist Prime Minister Robert Fico.