Czech Republic: Pivovar Krusovice will spend CZK 158 million to pay loans

Shareholders in Czech brewery Kralovsky pivovar Krusovice decided to use almost CZK 158 million-worth of last year's profit to pay loans, The Prague Daily Monitor posted on May 12.

The brewery made net profit worth CZK 166.2 million in 2005, the best figure since 1992 when the company was established. Net debt fell to CZK 272.5 million in 2005 from over CZK 473 million a year earlier.

"In recent years, the company has been enjoying a period of annual economic growth," chief executive and deputy chairman Pavel Gregoric said after today's general meeting.

He added the improvement was due to higher sales, low costs and higher productivity.

Exports heading for 26 countries rose by more than 29 percent year-on-year to almost 200,000 hectolitres in 2005. The biggest clients are Germany, Russia and Slovakia.

The company also exported 175,000 hectolitres of Sternburg beer, sold exclusively to the German market.

On the whole, the brewery, established after 1517, produced 872,000 hectolitres of beer in 2005. The brewery with 300 staff is in the hands of Germany's Radeberger Gruppe with 99.83 percent of shares.