Czech Republic: Drinks Union 3Q 2006 profit is up 42 per cents at CZK67 million

Czech beverages producer Drinks Union made earnings of more than Kc67 million in January-September, compared with CZK47 million a year ago, with sales up one percent at nearly Kc906 million, CFO Miroslav Bretsnajdr told CTK October 23, Czech News Agency reported the same day.

The improvement came thanks to cost cuts and higher sales of spirits, he added. Spirits sales rose by almost 17 percent to 40,000 hectolitres. On the other hand, revenues from beer sale were stagnant. Drinks Union produced over 682,000 hectolitres of beer in its four breweries - Zlatopramen, Velke Brezno, Louny, Kutna Hora - a decline of some two percent against the same period of 2005. The management attributes the decline in beer sale especially to long winter and lower demand in cold weather.

Drinks Union is the fourth largest Czech beer maker and the country's biggest beer exporter to Germany. Its unit KB Liker is the third largest liqueur producer in the Czech Republic. The group is in the hands of several individuals.

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