Exports And Cost Cutting Largely Behind Double-Digit Budvar Income Growth

The Czech beer industry still looks to be in a tough spot. Its biggest beer companies are generally doing a lot better with their exports than they are at home. For example, while Budejovicky Budvar has just reported a 24% year-on-year (y-o-y) increase in net income to about US$10.4mn for the year to December 2010, the bulk of this growth was delivered through cost cutting and growing the share of exports to overall sales (Czech beer is very popular internationally, especially in Germany). Budvar's sales in 2010 were down 5% y-o-y. Exports accounted for 48.4% of 125mn litres of beer

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