Czech brewer Budvar’s net profit up 46.3% in 2023 as it recovers from loss of the Russian market
Czech brewer Budvar’s net profit up 46.3% in 2023 as it recovers from loss of the Russian market
PRAGUE (AP) — The Czech brewer Budvar, which has been embroiled in a long legal dispute with U.S. beer giant Anheuser-Busch over the use of the Budweiser brand, said Friday it increased its net profit, output and exports in 2023.
Budejovicky Budvar NP said its net profit jumped 46.3% last year to 293.8 million Czech crowns ($12.6 million).
It attributed the result to successful development of its markets at home and abroad, which helped compensate for the loss of the Russian market. Budvar halted exports to Russia and Belarus following Russia’s invasion of Ukraine in February 2022.
The 128-year-old state-owned brewery reported a 40% fall in profit in 2022 due to Russia’s war in Ukraine and high inflation driven by soaring energy prices.
A weaker local currency also contributed to the increased profit in 2023, Budvar said. It exported 72% of its 2023 output, which totaled 1.865 million hectoliters (49.3 million gallons), 4.3% more than the previous year.
Exports went up by 4.6% in 2023, with Germany, Poland, Slovakia, Britain, Austria and Canada the top markets. The company sells its beer in some 70 countries.
Budvar and Anheuser-Busch have been in a trademark dispute over the Budweiser brand since 1906. Anheuser-Busch joined AB InBev in 2008.
Budvar holds exclusive rights to sell Budweiser beer in most major European markets, including Germany. But in the United Kingdom, both Budvar and AB InBev can sell Budweiser after a court ruled that consumers can tell the difference between the two.
AB InBev is a much larger company.
