Zwack earnings slip on bar, restaurant restrictions


After-tax profit of Zwack Unicum, Hungary's biggest spirits maker, fell 15% to HUF 1.4 billion in its business year ended March 31, earnings report released on Wednesday shows, according to state news wire MTI.

Net revenue declined 6% to HUF 13.1 bln as restaurants and pubs, which generate about half of Zwack's sales in Hungary, were closed for periods to contain the spread of the coronavirus.

Material costs fell at a slower rate, dropping 3% to HUF 5.1 bln, causing gross margin to narrow 9% to HUF 7.9 bln.

Payroll costs rose 3% to HUF 3 bln, but other operating expenses slipped 16% to HUF 3 bln as Zwack plowed less into marketing because of the cancellation of entertainment and gastronomy events.

"We hope that the toughest period of the pandemic is behind us," Zwack said in the report, although acknowledging the possible longer-term impact of additional lockdowns or consumer caution on domestic demand for spirits and the company's growth prospects.

In a separate disclosure, Zwack said its board will propose payment of a HUF 700-per-share dividend on the business year's earnings at an AGM scheduled for June 30.

The dividend fund comes to HUF 1.4 bln.

A year earlier, Zwack paid a HUF 300-per-share dividend.


Lawmakers Approve No-fee Cashback Service Banking

Lawmakers Approve No-fee Cashback Service

MPs Approve Tax Changes Parliament

MPs Approve Tax Changes

New Home Prices Edge up 3% Residential

New Home Prices Edge up 3%

24th FIABCI Hungarian Prix d’Excellence Held Awards

24th FIABCI Hungarian Prix d’Excellence Held


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.