Growing market, Euro 2016 lift Zwack sales
Zwack Unicum, Hungaryʼs best-known spirits maker, posted after-tax profit of HUF 532 million in the first quarter of its business year starting April 1, up 50% year-on-year, an earnings report released late Monday shows, according to Hungarian news agency MTI.
Profits climbed as sales jumped and operating costs were kept in check. Gross sales rose 22% to HUF 5.30 billion, while net sales were up 24% at HUF 3.16 bln.
Zwack noted that the rise came against a low base that followed a stock-up on products before the introduction of a public health product tax. At the same time, it also attributed the increase to the impact of the UEFA European Championship and market expansion.
Market research data show Hungaryʼs spirits market grew 3.3%, in volume terms, during the period, lifted by higher sales of premium and quality products, while the non-branded segment contracted.
Direct costs of sales rose at a faster rate than revenue, increasing 27% to HUF 1.28 bln. The gross margin was up 22% at HUF 1.89 bln.
Operating costs increased just 7% to HUF 1.34 bln, lifting operating profit by 49% to HUF 688 mln.
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