Pivovary Staropramen Experiences Revenue Increase, But Profits Fall

The Pivovary Staropramen company, a dominant player in the Czech beer market, reported a substantial increase in revenue for 2022. The company’s annual turnover rose by 395 million CZK, reaching a total of 4.6 billion CZK. However, due to a complex economic situation, the operating profit (EBITDA), which is profit before interest, taxes, and depreciation, significantly dropped by 127 million CZK to 408 million CZK. The company communicated these changes during a press release on Thursday.

Interestingly, Pivovary Staropramen ended the year with an accounting loss of 2.2 billion CZK after taxation. So-called adjustment items significantly influenced this situation.

The company’s financial director, Nemanja Vidovič, attributed the drop in operating profit primarily to the rise in input costs. Increased energy and raw material prices caused this rise due to the war conflict in Ukraine.

Despite the economic hurdles, the company sold 3.13 million hectoliters of beer last year. Domestic sales grew by almost one percent, mainly due to lifting of COVID-19 restrictions. Furthermore, a strategic change in the domestic market sales structure, implemented in the previous year, also contributed to this growth.

On the other hand, the company’s exports slightly decreased from 976,000 hectares in 2021 to 952,000 hectares in 2022. This was due to the company’s decision to withdraw from the Russian market due to the war in Ukraine.

In conclusion, while Pivovary Staropramen managed to increase its revenue in 2022, complex economic conditions and the company’s strategic decisions significantly dropped its operating profit. Despite these challenges, the company remains a strong player in the Czech beer market.