Epidemic cut sales, profit of Pivovarna Laško Union in 2020

Ljubljana/Laško – Pivovarna Laško Union, Slovenia’s largest brewery, last year generated EUR 145.6 million in net sales revenue, up 6.9% year-on-year, with the company attributing the drop to the Covid-19 epidemic. Net profit decreased by 31.5% to EUR 16.7 million, shows the annual report published on Wednesday.

Volume-wise, sales of beers brewed by Pivovarna Laško Union in the Slovenian market were down by 9.6%. “Affecting the sales the most was the epidemic, which among other things brought closure of bars and restaurants and a large drop in tourism.”

The annual report adds that the changed habits of buyers brought by the epidemic in Slovenia had also resulted in a drop in sales of bottled water and fruit juices.

This was partially offset by an online app that enabled home delivery of beer and other drinks during the full closure of bars and restaurants. “There was a strong positive trend in volume sales through the web platform,” the company said.

In foreign markets, meanwhile, Pivovarna Laško Union saw volume sales of beer increase by 11.8% compared to 2019, with the share of net sales revenue generated in foreign markets representing 32% of total sales last year.

The growth was mostly connected with cooperation with the companies in the Heineken group, which has been owning the Slovenian brewery since 2016. The Western Balkans, Italy and Austria accounted for the bulk of foreign sales.

The company carried out a number of investment projects last year, including the introduction of a new can format at the Ljubljana location and a second phase of the project to produce Heineken beer at the Laško location.

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