Česká zbrojovka Group saw record revenues in 2020

Photo: Twiek / Wikimedia Commons, CC BY-SA 3.0

The Czech small arms producer Česká zbrojovka Group SE (CZG) saw year-on-year profits rise by 14.6 percent to CZK 6.8 billion in 2020. Meanwhile, the holding’s operating profit increased by 11.9 percent compared to the year to more than 1.056 billion crowns, the Czech News Agency reported on Wednesday.

CZG sold 476,463 guns last year, a quarter more than in 2019. The revenues registered last year reached a new record, according to CZG Chairman Lubomír Kovařík.

“Last year was another important step in the history of our group. We also successfully finished our public offering of shares on the Prague Stock Exchange. This step has strengthened our commitment to be transparent and secure the necessary funds for further expansion.

“This includes the acquisition of Colt, which we announced in February 2021 and expect to be completed in the second quarter of 2021.”

Last month, CZG signed a contract agreeing to purchase a 100 percent stake in Colt Holding Company LLC, the owner of America’s Colt Manufacturing Company LLC and its Canadian sister business Colt Canada Corporation.

Colt was once the dominating force in the small arms industry and a seminal influence on manufacturing technology, but fell on rough times after the end of the Cold War and has been struggling financially since. Nevertheless, the purchase of Colt adds a truly major brand to the portfolio of CZG.

Last year, CZG also bought a small stake in Spuhr i Dalby AB, the Swedish manufacturer specialising in gun adjustments and optics.

According to the group’s vice-chairman of the board, Jan Drahota, CZG’s sales and revenue growth were largely down to a rise in demand, especially in the United States. US revenues did indeed make up two-thirds of last year’s revenues for CZG, followed by 13.8 percent from Europe excluding the domestic Czech market. Asia accounted for 6.2 percent of revenues, while African revenues lay at 5.7 percent.

Mr. Drahota told the Czech News Agency that CZG plans to pay out dividends worth CZK 7.50 per share.

CZG is the owner of the Česká zbrojovka small arms manufacturing facility in Uherský Brod. It also controls the companies CZ-USA, Zbrojovka Brno, 4M Systems and CZ Export Prague. In total, CZG employs around 1,670 people working in the Czech Republic, the United States and in Germany.