Plzeňský Prazdroj has recorded a very successful period under the new owner, Japanese brewing company Asahi. The months from 1 April to 31 December 2017 saw a major increase in sales of premium beers on both domestic and international markets, with the innovation launches achieving similar success.
Plzensky Prazdroj’s announcement of its results for a shortened accounting period, which is not comparable to previous years as it was shortened to nine months to align evaluation of the performance results with the parent company, follows the approval of the Annual Report of several days ago. The past accounting period was a period of major changes for the brewing industry as well as Plzensky Prazdroj. Therefore, the company stepped up its efforts aimed at looking after the Czech beer culture and offering pubs and restaurants assistance both in the form of equipment and consultancy, provided in the key areas of law, accounting, economics and marketing. The care paid off for Prazdroj in the form of higher throughput volumes compared with its competitors. The efforts made in all areas are reflected in the financial results. “Thanks to our continuous care for the premium segment, our focus on quality and the development of new products and variants which expand our offering and attract new customers, we can state that last year was a successful one. For the reported period from 1 April to 31 December 2017, Plzensky Prazdroj’s sales of goods, own products and services exceeded CZK 12 billion, profits after tax amounted to CZK 2.6 billion and capital investments reached the level of CZK 882 million. Over the given period, Plzeňský Prazdroj paid a contribution of CZK 4 billion to the national budget, one of the highest figures paid in the Czech Republic even when compared to other companies which paid their taxes based on 12-month performance results,” said Grant Liversage, Plzensky Prazdroj’s Managing Director.
It is obvious that the care Plzensky Prazdroj has put into the premium segment, which was a greatest contribution to the total production volume, has paid off. Sales of the outstanding Pilsner Urquell lager grew both in the On-Trade channel (restaurants) and in the Off Trade (shops). Similarly successful were also other premium lagers: Gambrinus, Velkopopovický Kozel and Radegast. The category of low-gravity beers, especially Radegast Genuinely Bitter 10, saw consumer demand grow. The increase in the company’s sales was also driven by ciders, in particular Frisco, which has enjoyed a growing popularity with consumers, while non-alcoholic Birell brand was also very successful. Over the monitored period, Plzensky Prazdroj launched brand new flavour variants for Birell Botanicals, namely Elderflower with Thyme & Lemon and Green Tea with Jasmin & Bergamot. The company also complied with customers’ requirements by expanding its offer by new packaging. Thanks to the new canning line launched in June last year – an investment of CZK 300 million – Plzensky Prazdroj is able to offer beverages in 8 different volumes of packaging.
Prazdroj has continued to develop its business in the year 2018, with the most significant investment being the expansion of brewing capacity of Pilsner Urquell lager by as much as one-third to 3.5 million hectolitres per year.