Tax changes impact Zwack revenues, profit
Net sales of Zwack Unicum, Hungaryʼs best-known spirits maker, fell about 3% year-on-year to HUF 12.1 billion in the first three quarters of the companyʼs business year, which ends March 31, an earnings report published late Monday shows.
Zwack attributed the decline to a spike in sales of its Kalinka vodka brand in the base period, before the spirit was impacted by changes to the Public Health Product Tax.
The scope of the tax was broadened from the start of the 2017 calendar year. Zwack paid HUF 1.2 bln on the tax in Q1-Q3, one-third more than in the base period.
Operating costs rose 5% to HUF 4.7 bln, while operating profit dropped 14% to HUF 3.0 bln.
However, the reduction in Hungaryʼs corporate tax rate lifted Zwackʼs bottom line, and after-tax profit edged down just 1% to HUF 2.5 bln as a consequence.
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