Audited results of the national brewery Budweiser Budvar for 2018

Last year, the national brewery Budweiser Budvar increased its beer production by 3.6% to 1.602 million hectolitres, exporting the most beer in the history of the corporation to 79 states, specifically 1.075 million hectolitres, which is 8.5% more year-on-year. Beer receipts reached a record value of CZK 2,555 million. The profit before tax increased by 4.2% to CZK 327.9 million. In 2018, the corporation invested CZK 453 million, launching an automated logistics centre and a new lager cellar into operation.

České Budějovice, 27th June 2019 – Last year, the national brewery Budweiser Budvar increased its year-on-year beer production by 3.6% to 1.602 million hectolitres. This is the second highest volume of beer in 123 years of the corporation’s existence. Lager was the driving force of the growth. The sales of Budweiser Budvar lager increased by 7.2%. Thus, in 2018, the brewery brewed the most lager in its history and its share in the total brewery production reached almost 75%. Export was very successful last year. Export to 79 export territories increased year-on-year by 8.5% to 1.075 million hectolitres, being the highest in history. The national brewery thus confirmed its position as the second largest Czech exporter with 21% share in total Czech exports. The sales of beer in the Czech Republic decreased by 5%, but they were fully compensated by an increase in domestic receipts by 2% thanks to the focus on the sales of Budweiser Budvar Premium Lager.

The brewery achieved record receipts for its own products and services worth CZK 2,633 million. Beer receipts alone grew by 6.7% year-on-year to CZK 2,555 million. “We managed to sell more expensive products, i.e. premium lager. As a result, beer receipts rose almost twice as fast as the volume of beer sold,” says Budweiser Budvar's managing director Petr Dvořák.  

Good business results were also positively reflected in the company's economic activity. The profit before tax went up by 4.2% year-on-year to CZK 327.9 million. The EBITDA of the corporation grew by 5% year-on-year. “This result is very good in a situation where depreciation, personnel costs, energy and ingredient prices increased significantly. The price for these items rose by CZK 105 million year-on-year. At the same time, we had to cope with the lack of production capacity for increasing the volume of beer sold,” explains Petr Dvořák. The increase in depreciation is related to the massive investment development of the brewery, which started in 2015. In addition to that, the company had to respond to the shortage of labour by a year-on-year increase in personnel costs by 13.5%.

Budweiser Budvar spent CZK 453 million on investment last year. A fully automated logistics centre was put into full operation, as well as a new lager tank department, which increased the cellar capacity by 20%. The development of the brewery will continue this year with the construction of a third bottling line for bottled beer and capacities for main fermentation (cylindrical-conical tanks) in the total value of approx. CZK 671 million.

In 2018, the national brewery launched cooperation with selected Czech microbreweries, whose "craft beers" significantly expanded its trading portfolio. The new types of beer help to attract new customers to restaurants, increase the loyalty of restaurant owners, and serve as an important acquisition tool to attract new customers in the gastronomy sector.

Important events in 2018 include the delivery of blessed beer to the Holy Father Pope Francis. The blessed beer was sold during Advent and the total proceeds from its sale in the amount of CZK 216 thousand was donated to the Diocesan Charity České Budějovice.

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