Zwack profit down in H1 as sales decline
After-tax profit of Zwack Unicum, Hungaryʼs best-known spirits maker, fell 12% year-on-year to HUF 886 million in the first half of its 2017-2018 business year, an earnings report released after the bourse closing bell on Tuesday shows.
Total gross sales of the company amounted to HUF 10.62 billion, a year-on-year decrease of 3.6%. Net sales of own-produced goods decreased, but sales of premium products rose, according to a summary by state news wire MTI.
Zwackʼs revenues, net of taxes, rose just 0.2% to HUF 6.46 bln, while direct costs of sales climbed 0.7% to HUF 2.65 bln, lowering the gross margin by 0.2% to HUF 3.80 bln.
Payroll costs jumped 6.1% to HUF 1.33 bln. Other operating expenses climbed 6.7% to HUF 1.43 bln, mainly due to an increase in marketing expenses, Zwack said.
Profit from operations was down 18.5% at HUF 1.07 bln in H1.
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