Zwack Unicum profit jumps 26.8% in first three-quarters of business year
After-tax profit for Zwack Unicum, the quintessentially Hungarian spirits maker, rose 26.8% to HUF 2.53 bln in the first three quarters of its 2016-2017 business year, the company said late yesterday in its earnings report, state news agency MTI reported.
According to IFRS accounting rules for the period between April 1, 2016 and December 31, 2016 the company achieved a HUF 3.45 bln profit before tax, 32.7% higher than in the same period a year earlier.
Zwackʼs gross revenue was HUF 21.87 bln in the first three-quarters of its business year, up 19.8% annually.
The excise tax it was required to pay was up 30.8% at HUF 8.53 bln, the public health product tax was down 13.8% at HUF 890 mln and the cost of goods rose 15% to HUF 5.17 bln.
Zwack said its excise tax bill increased more than its gross sales due to changes in the mix of products sold.
The amendment of the Act on Public Health Product Tax was the main cause of the spike in gross sales at the end of the period, as a broad range of products will be affected and the companyʼs trading partners brought forward considerable purchases of Kalinka vodka.
Operating expenses were up 4.6% at HUF 4.43 bln but operating profit jumped 33.3% to HUF 3.44 bln.
Total assets were up at HUF 13.72 bln at the end of 2016 compared to HUF 9.57 bln at the start of the business year and HUF 11.91 bln at the end of 2015.
Management predicts that, for the entire business year, after tax profit will reach HUF 2 bln.
Zwack spent HUF 425 mln on fixed assets during Q1-Q3; about HUF 100 mln went towards infrastructure upgrades.
Market research figures for April-November 2016 show that in volume terms the Hungarian spirits market grew by 1.4%, a net effect of the premium segment growing 8.2% and the quality segment by 11.5%, although the non-branded segment decreased by 8.6%.
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