Last year’s long-term lock-down of pubs and restaurants due to COVID-19 crisis and related decrease in sales reflected in 2020 economic results of Plzeňský Prazdroj.
Last year Prazdroj sold 111 M beers fewer on local market than it did in 2019, which represents an 8% decrease. “Neither higher interest in bottled and canned beer, nor maintaining our sales figures abroad on the same level as in 2019, helped compensate the losses caused by restrictions of the operation of pubs and restaurants. In the pre-covid times, draft beer constituted 40% of our sales and this segment dropped by almost a third last year,“ says Dragoş Constantinescu, General Manager of Plzeňský Prazdroj.
This reflected in the year-on-year economic results as a drop of nett profit by 20% to CZK 3.8 billion. The revenue decreased by more than CZK 1 billion to roughly CZK 16 b. Despite this, Prazdroj still belongs to the group of twenty companies paying the most in tax. Last year, it contributed CZK 5 b to the national treasury. Last year, the company also increased capital investment by 13%.
“We have not stopped investing in the development of our breweries, in new technology and in our employees. One of our long-term goals is to reduce the impact of our company on the environment so that our business is sustainable and even future generation can enjoy our products. An example of these tendencies is our packaging strategy. Last year we stopped filling Gambrinus and Radegast beer into plastic bottles and we are planning to turn away from this practice in general in the future. We focus on the ratio of recycled material in our cans and we are getting ready for the use renewable energy sources. Apart from eco-friendliness, our last year’s investments were also directed to enlarging our production, which is the best example of our long-term emphasis on growth,” states Dragoş Constantinescu.
During the whole year Prazdroj has been strongly supporting pubs and restaurants and it invested roughly half a billion Czech crowns in this sector last year. This year, further investment is being made in drafting equipment, beer gardens (and other outdoor seating areas) and staff training. “At this moment, we mainly focus on helping pubs and restaurants to develop and renew. We are trying to help pubs make use of the main season just as we did in the period after last year’s lock-down which is marked as the time we supplied a record number of establishments in our history. This was thanks to our systematic support of the gastronomical sector and the timely preparation of pub and restaurant outdoor seating areas. We are continuing this year and we shall see whether we will succeed in repeating the record. Our main priority is for people to feel comfortable and safe in pubs and come back. Pubs have traditionally been part of Czech society. We are unique when it comes to beer culture and we try to support this phenomenon and improve its level further,“ Tomáš Mráz, Sales Director says.
Notes for editors:
- In 2020, Plzeňský Prazdroj sold a record 11 million hectolitres of beer in Czechia and abroad, thus 4.2% more compared to 2019. 6.69 million hectolitres thereof were sold in Czechia (8% less, in fact 111 million hectolitres fewer than in 2019) and 4.5 million hectolitres abroad (roughly 1% more than in 2019).
- With exports to more than 50 countries around the world, Plzeňský Prazdroj is a leader among beer producers in the region and the largest exporter of Czech beer.
In 2019, Plzeňský Prazdroj received the most prominent award – Trendsetter – in the TOP Responsible Company by Business for Society chart for setting trends in the area of sustainability and for bringing inspiring new impulses for business responsibility in Czechia over the long term.