Czech Leather Firm Karo Leather Announces Record Profits and Share Buyback Program
Prague,Czech Republic – Karo leather,a leading Central European processor of leather for the furniture and footwear industries,is experiencing a period of unprecedented success.The company announced today a 129% year-over-year increase in operating profit for the first half of 2025, reaching 62.7 million czech crowns (approximately $2.5 million USD). This surge in profitability is largely attributed to the recent opening of its new production plant in Brtnice.
Karo Leather, which has been publicly traded on the Prague Stock Exchange since 2019, reported that the second quarter of the year was ”one of the best in the company’s history.” Management is optimistic about the remainder of the year, forecasting total sales of around 400 million crowns and an EBITDA operating profit of nearly 137 million crowns.
Rewarding Shareholders with Buyback Program
Driven by these strong results and positive future outlook, Karo Leather is launching a share buyback program designed to return up to half of its undivided profits to investors. This program, potentially worth between 3-10% of the company’s current market capitalization annually (currently exceeding one billion crowns, or approximately $40 million USD), aims to increase shareholder value.Share buybacks reduce the number of outstanding shares, concentrating profits among fewer holdings and potentially increasing the value of each individual share. Karo Leather plans to allocate up to 300 million crowns over the next five years to repurchase shares at a price range of 100 to 500 crowns per share.
“The aim is to gradually reduce the number of shares issued last year – 1.9 million units – which were issued to repay non-bank loans,” the company stated. Share purchases are expected to begin in 2026.
Following a Trend: Colt CZ Also Initiates Buyback
Karo Leather isn’t alone in this strategy. Colt CZ, a firearms manufacturer, launched a similar share repurchase program earlier this year, allocating up to 847 million crowns for buybacks through mid-2026, representing approximately 2.3% of its issued shares.Karo Leather: Key Financial Highlights
| Period | Sales (Millions CZK) | EBITDA (Millions CZK) | Net Profit (Millions CZK) | pure Margin (%) |
|————–|———————–|————————|—————————|—————–|
| II. Quarter |
