Major Czech Brewer Announces Financial Results for Fiscal Year ending 31 March 2006

23.5.2006 Uncategorized

The financial results of Plzensky Prazdroj, a. s. for the fiscal year ended 31st March 2006 were announced today.

Highlights:

  • Revenue growth of 4%, to CZK 13.55bn.
  • Operating profit growth of 11% to CZK 4.62bn
  • Net profit for the current period after tax increased of 15% to CZK 3.38bn.

The period under review marked another successful year for Plzensky Prazdroj, a. s. The company reaffirmed its position as the Czech’s leading brewer and beer exporter by delivering another strong performance and improving its domestic market share. An increase in operational profit was achieved despite the cooler summer weather in 2005 and an overall flat in the Czech beer market.

All major brands of Plzeňský Prazdroj delivered robust performances, especially Pilsner Urquell, Gambrinus and Velkopopovický Kozel. Pilsner Urquell has confirmed again its position of premium brand of Plzeňský Prazdroj and flagship of SABMiller’s portftolio. Velkopopovický Kozel has now become a truly multi-national brand with significant success in many European markets, particularly in Russia where sales have increased by 55%.

Both Pilsner Urquell and Gambrinus, as the company’s core brands, grew share in the domestic market. In March 2006, the company also refreshed its Gambrinus brand by introducing new bottles and crates to the market.

Due to changing consumer lifestyles, as well as its exceptional quality, our non-alcoholic brand Radegast Birell continued the double-digit growth it has been experiencing over recent years.

In Summer 2005, Plzeňský Prazdroj launched a pale lager Velkopopovicky Kozel 11° Medium to compete in the growing eleven-degree beer market and initial results are encouraging.

Total volumes abroad (export and licensed production) grew 21% for the year, with principle markets including Germany, USA, and Slovakia. Production under licence in carefully selected and controlled markets has been also been developed successfully throughout the year.

 

Mike Short

Commenting on the financial results, Mike Short, Chairman and Managing Director of Plzensky Prazdroj, a. s. stated: “All PPAS employees can be proud of these excellent results, which we achieved despite the challenging market conditions and the considerable investments that we made during the year – in total exceeding CZK 2bn. We have embarked on a road of refreshing and revitalising our brands whilst retaining our traditional recipes and processes. In anticipation of increased export sales of Pilsner Urquell, a large refurbishment has commenced at our Plzen brewery including an expansion of capacity and the modernisation of the distribution system. The year has also seen us develop many initiatives related to our structure and organisation which we believe will provide a solid platform for future sustainable growth. The trading environment is always changing however, and it is vital that we draw on all resources to build on the successes of last year.”

Financial highlights:
 
 
Year ended
31 March 2006
(CZK ’000)
Year ended
31 March 2005
(CZK ’000)
Revenues from sales of goods,
own products and services

13,549,629
 

13,030,328
 
Operating profit 4,623,399 4,165,803
Profit for the current period
after tax
3,377,000
 
2,962,226
 

Notes for editors:

  • With total sales of more than 10.2 million hectolitres for the calendar year 2005 and with beer sold in over 50 countries of the world, Plzensky Prazdroj, a. s. is the leading brewing company in the region and the biggest exporter of Czech beer.
  • In the financial year ended 31st March 2006, Plzensky Prazdroj, a. s. employed, on a full-time equivalent basis, 2,575 people at the Pilsen, Nošovice and Velké Popovice breweries, as well as in 13 Sales and Distribution Centres throughout the Czech Republic.
  • Plzensky Prazdroj, a. s. is a member of SABMiller plc, by volume the second largest global brewing company worldwide with brewing interests or distribution agreements in over 60 countries across five continents. The group’s brands include premium international beers such as Pilsner Urquell, Miller Genuine Draft and Peroni Nastro Azzurro, as well as an exceptional range of market leading local brands. Outside the USA, SABMiller plc is also one of the largest bottlers of Coca-Cola products in the world.

Contact:
Lucie Roztocilova
Corporate Affairs Department
+420 724 617 824

 

Pilsen