Natʼl tobacco supplier opens logistics center
Országos Dohányboltellátó (ODBE), the state-owned national supplier of tobacco shops, opened a more than 2,000 square-meter logistics center in Zalaegerszeg (227 km southwest of Budapest) on Friday, Hungarian news agency MTI reported.
ODBE will lease the center from NIPÜF, the national industrial park operator and developer, which built it at a cost of HUF 1 billion. The supply company will store inventories worth about HUF 2 bln, which will change every 14 days.
The center will employ 60 people and will supply 10% of the country or about 700 tobacco shops in the Western Transdanubia region, Managing Director Árpád Pehő said. ODBE operates ten distribution centers nationwide, supplying a total of 1,700 tobacco shops with its fleet of 165 vehicles and employing 700 workers, he added.
The concession company had after-tax profit of HUF 3.5 bln on net sales revenue of HUF 353 bln in 2017, making it the 11th biggest company in terms of sales, Pehő said.
ODBE was established by legislation passed in 2014 as a single company, licensed by the state, to buy tobacco from wholesalers and sell it to retailers.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.