Budweiser Budvar Brewery’s 2015 business and economic results
Budweiser Budvar, N.C. has released its audited 2015 business and economic results today. The volume of beer sold last year rose by 9.9% onto the volume of 1,601,938 hectolitres. This increase confirmed the long-term trend - in the last 10 years the brewery’s total volume sold has gone up by 39%, and since 1991 it has grown by 226%. Last year's sales of beer were also the highest in the corporation’s 120 years of existence. The sales of the key type of beer - Budweiser Budvar Premium Lager, increased by 12%, while the sales of Pardál Echt Lager went up by 9%. The sales of bottled beer grew by 10% and the sales of cans increased by 29%. Domestic beer sales grew by 9% and the export rose by 10.5%. Budweiser Budvar participated on the overall beer export from the Czech Republic by 21.7% last year.
“This outcome results from the high quality of our beer based on the tradition and time-tested craft procedures on one side, and the work of all 653 employees of the brewery on the other,” says Budweiser Budvar’s commercial director Robert Chrt. Last year Budweiser Budvar was commercially more successful than the average of the Czech brewing industry was, thus increasing its share of the Czech beer production from 8.5% to 9.08%.
Naturally, the very good business results were reflected in the economy. “The results exceeded planned expectations in every respect. The revenues amounted to CZK 2,470 million, representing a 5.6% y.o.y increase. The profit before tax grew by 13.8% y.o.y onto CZK 349.8 million,” says Budweiser Budvar’s economic director Petr Žáček. The profit was primarily created in the operational area, its main source being higher sales of beer. “The effect of the stable Czech koruna was also positive, so were the cost savings we achieved when purchasing energy, overhead material and services," adds Petr Žáček. Last year, the corporation spent CZK 302.1 million on investments and repairs. The investment was for instance made into repairing the bottling plant, constructing a pressure cellar and purchasing vehicles or IT.
In 2015 the brewery nearly reached the limit of its production and logistics capabilities. If the company is to continue its long-term advancement, it needs to invest heavily in the immediate future. Further development of the corporation is also supported by its founder; therefore, the corporation authorities discussed the ‘Business Development Strategy for the Years 2015-2020’ last year, which contains an extensive capital construction plan worth about CZK 1,500 million. “By the end of 2019, these investments should enable an increase in the production capacity by 20%. The implementation of the ‘Business Development Strategy’ is already in full swing. Its first project - pressure tanks - has already been completed, while the upgrade of the ERP system is currently taking place. Right now we are beginning the construction of a modern logistics centre,” explains Budweiser Budvar’s brewing master Adam Brož, Ph.D., MBA. The logistics centre will be equipped with a state-of-the-art storage and transport technology, and will improve the traffic situation on Kněžskodvorská Street after its completion in 2018. “We have also started preparing a project to expand the cellars and the bottling plant. Everything should be finished by 2020,” concludes Adam Brož.