Pivovary Staropramen, a prominent player in the Czech beer market, revealed a substantial boost in revenue for the year 2022. The company’s annual turnover witnessed a notable increase, surging by 395 million CZK and reaching a total of 4.6 billion CZK. However, despite this revenue growth, the operating profit (EBITDA) experienced a significant decline, dropping by 127 million CZK to 408 million CZK, a consequence of the intricate economic situation. The company communicated these financial developments in a press release issued on Thursday.

Notably, Pivovary Staropramen concluded the year with an accounting loss of 2.2 billion CZK after taxation, with adjustment items playing a significant role in influencing this situation.

Nemanja Vidovič, the company’s financial director, attributed the dip in operating profit primarily to the escalation in input costs. The surge in energy and raw material prices, driven by the conflict in Ukraine, played a pivotal role in this increase.

Despite facing economic challenges, the company achieved a notable sales volume, with 3.13 million hectoliters of beer sold in the past year. Domestic sales experienced a growth of almost one percent, attributed largely to the easing of COVID-19 restrictions. Additionally, a strategic shift in the domestic market sales structure, implemented the previous year, also contributed to this growth.

However, the company encountered a slight dip in exports, dropping from 976,000 hectoliters in 2021 to 952,000 hectoliters in 2022. This reduction was a consequence of the company’s decision to withdraw from the Russian market due to the ongoing war in Ukraine.

In summary, while Pivovary Staropramen succeeded in boosting its revenue in 2022, the complexities of the economic landscape and strategic decisions significantly impacted its operating profit. Despite these challenges, the company remains a resilient and influential player in the Czech beer market.

Article by Prague Forum