12/06/2026 18:50
Given
the latest hawkish statements from the CNB board, we have changed our call for
the central bank’s June meeting from rate stability to a 25bp hike. This would
take the key repo rate to 3.75%. However, the board’s statements indicate that
the June hike would not necessarily mark the start of a new tightening cycle.
We therefore expect the June hike to be a precautionary measure, putting the
central bank in a stronger position amid rising inflationary risks. Following
the June hike, we expect the repo rate to remain at 3.75% for the rest of this
year and throughout next year. This is due to the robust economy and fiscal
policy, which is likely to be more expansionary in 2027 than we previously
thought. If energy and other raw material prices remain persistently high,
however, we think that one hike will be insufficient and more will have to
follow.
17/06/2026 10:17
Annual General Meeting At today’s Annual General Meeting, Kofola
shareholders will approve the board of directors’ proposal to pay a dividend of CZK21 per
share, among other things. The meeting will take place on June 17, 2026, at
10:00 a.m. The CZK21 dividend offers a gross yield of
+4.0%. The record
date is expected to be Friday, June 26, 2026. This means that Wednesday,
June 24, 2026, will be the last trading day with the right to receive the
dividend. End of Partnership with PepsiCo in the Adriatic Region Kofola announced that it will end
its partnership with PepsiCo in Slovenia and Croatia on January 1, 2027. Kofola currently operates as a
Pepsi bottler and distributor. We
expect this change to result in a slight decline in revenue in the low
single-digit percentage range. Kofola will replace Pepsi products with its own
brands. Furthermore, the margin on sales of its own beverages will
be significantly higher than the current margin on Pepsi products. Kofola has already experienced a similar situation when it ended its
partnership with Rauch and replaced their juices with its own brands.