CSG Half-Year Results: Revenue Beats Estimates on Ammo Demand Surge
CSG Reports Strong Half-Year Financial Performance
Revenue and Profit Exceed Analyst Expectations
Aug 7 (Reuters) - Czech-based defence firm CSG reported half-year revenue above market expectations on Friday, driven by strong demand for ammunition and a ramp-up in its land systems business.
The company's revenue came in at €3.3 billion ($3.8 billion), a beat to the €3.14 billion expected by analysts in a company-compiled consensus.
Growth in Defence Systems Arm
Its core Defence Systems arm, which spans ammunition and armoured vehicles, grew 27%.
Drivers of Increased Demand
CSG said demand for its ammunition remains strong as Ukraine shifts toward longer-range 155mm rounds, a category with few European producers, while European governments continue to prioritize stockpile replenishment and domestic production.
Order Backlog and Full-Year Outlook
Operating profit came in at €784 million, a slight beat to the €764 million expected by analysts, while its order backlog and pipeline grew to €46 billion from €44 billion in March.
The company confirmed its full-year targets.
Additional Information
($1 = 0.8678 euros)
(Reporting by Hugo Lhomedet; Editing by Milla Nissi-Prussak)
