Budvar Increases Net Profit Amid Pandemic

Budvar Brewery

Budweiser Budvar increased its profit after tax by less than ten percent to 305 million crowns last year. Revenues from the sale of products and services increased by 0.4 percent to CZK 2.81 billion, they were record-breaking. For the second year in a row, net turnover exceeded three billion crowns. Losses in the tens of millions of CZK were recorded by the company due to gastronomic operations closed during the coronary crisis. It follows from the annual report.

Exhibitions last year rose by 3.1 percent to 1.73 million hectoliters of beer, which was the most in the 125 years of the brewery’s existence. “We evaluate the year 2020 as successful, despite all the problems caused mainly by the covid-19 pandemic. We continued our strategy, we again achieved record sales with its very good projection into the economic result. The tasks and goals set by the plan and strategy met and exceeded, “said Petr Dvořák, Budvar’s director, at the end of the report.

The amount of depreciation reached 309 million crowns last year. Operating profit fell by 1.75 percent to CZK 332.1 million. Profit before tax rose by 2.3 percent year on year to CZK 371.9 million.

Last year, the National Brewery continued its development investments, which began in 2015. Last year, it invested 410 million crowns. “The brewery was helped, among other things, to cope significantly in the challenging situation of the covid-19 pandemic, when the newly installed capacity allowed to meet growing customer demand, especially for bottled beer. Thanks to both volume and sales, “the company said in its annual report.

The brewery with 670 employees sold more bottled beer and less keg beer last year. Budvar took advantage of the higher demand for bottled beer caused by the pandemic, especially in Germany, where it increased sales year on year. In the Czech Republic, according to the annual report, the fact that he started selling packaged bitter lager Budvar 33 also helped him to achieve good results.

The increase in exports greatly helped Budvar to achieve better results, with 69 percent participating in the exhibition last year. “In addition, however, we have achieved very good results on the domestic market,” said the brewery. Last year, it exported 1.19 million hectoliters (hl), a year-on-year increase of almost 40,000 hl.

This year, the company is investing about 500 million crowns and plans to grow the exhibition by four percent, Dvořák said. In March this year, Budvar announced that in the middle of the year a ten-degree bottled beer would become more expensive, similarly to the price of other bottled and canned beer by 3.7 to four percent since January. This summer, Budvar also wanted to put into operation other cylindrical-conical tanks.