Czech gunmaker Colt CZ lifts dividend after record revenue

PRAGUE (Reuters) - Czech gunmaker Colt CZ Group lifted its dividend on Thursday after posting record revenues for 2022, when a slowdown in its key U.S. market was offset by higher sales to military customers.

Revenue rose 36.5% last year to 14.59 billion crowns ($672.26 million), hitting the upper end of the company's guidance range.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 55.2% to 3.37 billion crowns, beating the company's forecast of 3.3 billion.

The company completed the takeover of U.S. brand Colt in 2021 as sales in that market were booming, and has used the acquisition to expand its customer base. But revenue growth in the United States, which made up almost half of sales in 2022, slowed to 12%, rising mainly because of Colt's consolidation.

"We were able to compensate for the relatively significant decline in the US commercial market by selling our products mainly to military customers," Chief Executive Officer Jan Drahota said.

The company proposed a 30 crown per share dividend from 2022 net profit, which jumped to 2.03 billion crowns. That was up from 25 crowns the previous year. Shareholders can choose between cash or stock in the dividend, Colt CZ said.

Shares were 1.4% higher in Thursday morning trade, after earlier touching a more than nine-month high.

The gunmaker wants to boost its position in the military segment going ahead, it said.

The company sees revenue rising in 2023, but is unsure how much given demand uncertainties and continued cost pressures.

Under a pessimistic scenario, revenue should rise to 15.1-15.5 billion crowns and adjusted EBITDA would ease a touch to 3.1-3.3 billion.

Under the group's target scenario, revenue would rise more than 12% to 16.4-16.9 billion crowns this year and adjusted EBITDA would reach 3.6-3.8 billion crowns.

($1 = 21.7030 Czech crowns)

(Reporting by Jason Hovet; Editing by Mark Potter)