FDBusiness.com

An increase in the excise duty on beer and adverse economic conditions in its domestic market have hit sales and profits at Plzensky Prazdrof, the Czech brewer which produces the famous Pilsner Urquell brand. Revenue decreased by 5.5% to CZK14.559b (Eur ) and profit before tax dropped 10.8% to CZK4.180b for the year ended March 31st 2011.

“Over the last two years, challenging market conditions have significantly influenced the whole Czech beer market. One of key adverse influences was beer excise tax increase during the difficult economic conditions. This measure did not meet government expectations at all and adversely impacted the brewing industry’s ability to develop and invest,” says  Doug Brodman, managing director of Plzensky Prazdroj. “These market conditions have reflected in our results for the year, however, we have continued to invest not only into our breweries and brands but also to the development of communities where we operate.”

With total sales of over 9.9m hectolitres in the calendar year 2010 (including licensed production abroad) and exports to more than 50 countries around the world, Plzensky Prazdro is the largest exporter of Czech beer. Plzensky Prazdroj is part of global brewer SABMiller. Indeed, Pilsner Urquell is the international flagship of the SABMiller brand portfolio.