Budweiser Budvar’s 2022 profit drops 40 percent due to Russia’s invasion of Ukraine

Czech Republic | The 127-year-old state-owned brewery Budweiser Budvar said that it has registered a fall in its 2022 profit and exports. Net profit dropped 40 percent to CZK 201 million (USD 9.3 million) over 2021. Revenue declined to CZK 3.031 billion from CZK 3.115 billion in the previous year.

Export volumes were down by 4 percent, as the firm was forced to halt shipments to Russia and Belarus after Russia invaded Ukraine in February last year. Russia was among its five main export markets.

The brewery reported on 1 July that sales to some other markets, such as Britain, Slovakia, Austria, Italy, Spain and Canada, went up. But overall, beer output fell 1.2 percent to 1.78 million hl in 2022. Comparatively little Budweiser Budvar is actually drunk in the Czech Republic.

Planned investments

The Budějovice Budvar brewery said recently that it will pay CZK 250 million (USD 11.5 million), more than last year’s profit, into the state budget this year.

On a visit to the brewery, Agriculture Minister Zdeněk Nekula (KDU-ČSL) confirmed that a privatization of the national enterprise "it is not on the table". Discussions centred on further development and increasing capacity. “We are at the ceiling of 1.9 million hl,” the Minister said. In addition to increasing production, the brewery should invest in photovoltaic panels on all the roofs of the premises.