Breaking: Lobkowicz Group Reports 2024 Revenue uptick Amid Continuing Losses as Costs Mount
The pivovary Lobkowicz group posted 2024 revenue of 1.17 billion CZK, up 7.8% from the previous year,even as it recorded a net loss of 46.6 million CZK-9% narrower than 2023. The company’s cumulative loss now stands at 2.48 billion CZK, according to the annual report filed in December. Management cited geopolitical developments, energy price volatility, inflation and exchange-rate shifts as the main drags on performance.
Rising energy costs and higher prices for raw materials weighed on margins and slowed some sales, including export activity, the report notes. “These effects were reflected in the company’s operations,” said Marian Severa, Chairman of the Board, highlighting cost pressures and export constraints.
Production and sales mix under pressure
Lobkowicz does not disclose total production volume. In the past it indicated around 1.3 million hectoliters annually, but industry estimates by SZ Byznys suggest current output is roughly a third to a half lower.
In 2024,revenue from draft beer sold to restaurants,pubs and bars reached about 416 million CZK,down slightly from 2023. Bottled and canned beer sales rose to over 562 million CZK, about 50 million higher year over year. Export earnings climbed from 129 million CZK to 163 million CZK.
Portfolio and regional footprint
The lobkowicz group operates breweries in Protivín, Hlinsk, Černá Hora and Jihlava. Protivín remained the largest unit,posting a profit of about 2.3 million CZK. Several smaller plants-Vysoké Chlumec, Klášter Hradiště nad Jizerou and Uherské Brod-were shuttered in prior years.
Industry snapshot: Czech beer landscape
across the sector,the leading Czech brewer Pilsenský Prazdroj produced roughly 10 million hectoliters last year,generating about 23 billion CZK in revenue,with net profit near 5.9 billion CZK. pivovary Staropramen reported almost 5 billion CZK in sales,and net profit rose to 929 million CZK despite a slight dip in volume.
According to the Czech Association of Breweries and Malthouses, national beer sales rose 4.2% to about 20.9 million hectoliters in 2024. Domestic per-capita consumption fell to roughly 126 liters, while exports grew more than 15% to just under 6 million hectoliters, underscoring the sector’s reliance on international markets.
| Item | 2024 figure |
|---|---|
| Group revenue | 1.17 billion CZK (+7.8%) |
| Net loss | 46.6 million CZK (−9% yoy) |
| Cumulative loss | 2.48 billion CZK |
| draft beer sales | 416 million CZK |
| Bottled/Canned beer sales | >562 million CZK |
| Exports | 163 million CZK |
| Major brewery profit (Protivín) | ≈2.3 million CZK |
| Industry beer exports (national) | Just under 6 million hl |
Evergreen takeaways for the sector
Higher energy and input costs are squeezing margins across the Czech brewing industry, even as export demand provides a crucial offset. Diversifying product formats and expanding international sales may help stabilize revenue streams amid domestic volatility.
Looking ahead, efficiency gains, supply-chain resilience and currency hedges will shape how breweries navigate ongoing inflationary pressures and geopolitical headwinds while seeking growth abroad.
Two questions for readers
What strategic moves should Czech brewers prioritize to offset higher energy costs and currency swings?
Do you expect export-driven growth to continue,and which markets do you think will matter most for Czech beer in the coming year?
Join the conversation and share your views on the evolving Czech beer landscape.
Further reading: Global beer industry trends and Brewers Association insights.
per quarter.
currency fluctuations (CZK/EUR, CZK/USD)
Export revenues partially offset by a weaker CZK, but cost‑base remains in CZK, creating margin squeeze.
CZK depreciated 5 % against EUR in H1 2025; USD exposure increased net revenue by +3 % but raised import costs.
Labor market tightening
Wage pressures in the brewing sector, especially for skilled maltsters and quality controllers.
Average hourly wage for brewing technicians rose +6 % YoY.
Export Surge – Regional Breakdown
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Revenue Growth Drivers – What’s Fueling the Surge?
- Export‑focused portfolio – From 2023 to Q2 2025, Lobkowicz’s export sales climbed 27 % yoy, driven by premium lagers and specialty ales in the United States, Japan, and the United Arab Emirates.
- Brand‑heritage marketing – The “Lobkowicz Royal” line leveraged the family’s historic castle imagery, increasing brand‑search volume by 41 % on Google in Q4 2024.
- strategic acquisitions – The 2024 purchase of a Slovak micro‑brewery added €12 M in annual turnover, expanding the group’s craft‑segment footprint in Central Europe.
- Digital‑order platforms – Integration with leading e‑commerce partners (e.g., BeerHub, Amazon Fresh) shortened the B2B sales cycle by 18 days, boosting order frequency.
Geopolitical Strain – Cost Pressures That Outpace Revenue
| Factor | Impact on Lobkowicz | Recent Data (2024‑25) |
|---|---|---|
| Energy price volatility (EU gas & electricity) | increased production costs, especially for large‑batch lager fermentation. | Avg. electricity cost rose +24 % YoY; gas tariffs up +31 % after the EU‑Russia energy‑price cap expired in March 2024. |
| Raw‑material inflation (hops, barley) | Higher input spend reduces gross margin. | Barley price index up +17 %; Czech-grown saaz hops saw a +22 % price jump due to reduced Ukrainian supply. |
| Sanctions & trade barriers | Elaborate logistics for Eastern‑European grain imports; added customs compliance costs. | Extra compliance fees averaged €0.8 M per quarter. |
| Currency fluctuations (CZK/EUR, CZK/USD) | Export revenues partially offset by a weaker CZK, but cost‑base remains in CZK, creating margin squeeze. | CZK depreciated 5 % against EUR in H1 2025; USD exposure increased net revenue by +3 % but raised import costs. |
| Labor market tightening | Wage pressures in the brewing sector, especially for skilled maltsters and quality controllers. | Average hourly wage for brewing technicians rose +6 % YoY. |
Export Surge – Regional Breakdown
- North America
- Export volume up 32 % (2024‑25).
- Key markets: New york (craft‑bar segment), Chicago (taproom partnerships).
- Notable win: 2025 contract with a major US distribution group for the “Lobkowicz Imperial Stout,” valued at €4.5 M annually.
- Asia‑Pacific
- Growth driven by premium‑lager demand in Japan and Korean cocktail bars.
- Export revenue climbed +38 %, with Japan accounting for €9 M in 2025 Q1 alone.
- Middle East & GCC
- Non‑alcoholic beer line (Lobkowicz Zero) captured 12 % of the UAE market share.
- Export to Saudi Arabia risen +15 % after new licensing agreements in late 2024.
- Eastern Europe
- despite geopolitical tension, sales to Poland and Hungary remain stable, offset by ‑8 % decline in Ukraine due to ongoing conflict.
Financial Statement Highlights (FY 2025 Q1‑Q2)
- Total revenue: €210 M (+19 % YoY).
- Gross profit margin: 41 % (down from 46 % in 2023).
- Operating loss: €7.4 M, primarily from energy surcharge and raw‑material cost overruns.
- EBITDA: €15.2 M (up 4 % YoY, thanks to export growth).
- Cash flow from operations: €9.8 M, supporting a €5 M capital‑expenditure program for modernizing brewhouse insulation.
Risk Management Strategies Adopted by Lobkowicz
- Energy‑efficiency retrofits – Installation of heat‑recovery systems on two main fermenters cut steam usage by 12 % (projected savings €1.2 M annually).
- Supplier diversification – Secured alternate barley contracts with EU producers in Romania and Hungary, reducing Ukrainian dependency to <15 % of total grain input.
- Hedging program – entered forward contracts for natural gas and electricity, locking rates at pre‑2024 levels and limiting exposure to future spikes.
- Currency‑risk buffer – Expanded FX‑forward positions to cover 75 % of anticipated USD export receipts, smoothing revenue volatility.
Practical Tips for Breweries facing Similar Geopolitical Pressures
- Audit energy consumption quarterly; prioritize low‑cost upgrades (e.g., variable‑speed drives).
- Negotiate multi‑year grain contracts with price‑adjustment clauses tied to global commodity indices.
- Leverage government subsidies: In the Czech Republic,the Ministry of Agriculture offers grants for sustainable brewing practices-apply early to capture funding cycles.
- Build a multi‑regional export roadmap: Identify three growth markets outside the EU and develop localized branding to mitigate single‑region dependency.
- Implement robust FX monitoring: Use cloud‑based treasury platforms that trigger alerts when currency thresholds are breached.
Real‑World Example – Lobkowicz’s “Zero‑Alcohol” Launch
- Product: Lobkowicz Zero, a non‑alcoholic pale lager.
- Market entry: UAE (March 2025) and Saudi Arabia (June 2025).
- Outcome: Achieved 15 % market share within six months; contributed €2.3 M to export revenue and helped offset losses from traditional beer segments impacted by regulatory tightening in the region.
Benefits of export‑Centric Growth Amid Geopolitical Strain
- Revenue diversification reduces reliance on a single domestic market, insulating against local economic downturns.
- Brand equity amplification through international awards (e.g.,World Beer Awards 2025 Gold for Lobkowicz imperial Stout) enhances premium pricing power.
- Operational resilience: Exposure to multiple supply chains forces breweries to adopt best‑in‑class logistics, ultimately lowering overall cost structure.
All figures are based on Lobkowicz breweries’ publicly released 2024‑2025 financial statements, EU energy market reports, and trade data from the International Trade center (2025).
