Gross revenue dropped 1% to HUF 21.1 bln. Revenue net of excise tax and the public health product tax declined 3% to HUF 12.5 bln. 

Material costs fell 7% to HUF 5.3 bln, lifting the gross margin half a percent to HUF 7.2 bln. 

Operating costs rose 5% to HUF 5.8 bln, dragging operating profit down 3% to HUF 2.2 bln. 

Zack noted that the domestic spirits market as a whole declined 4.2% during the period, though only because of lower sales of non-branded products. The premium and quality segments, which are key to Zwackʼs business, expanded by 5.7% and 6.5%, respectively, it added. 

Zwackʼs management predicts “growing risks” on the market in the coming business year in the report. The impact on the market of forthcoming legislative changes, such as to the excise tax and the public health product tax, are difficult to gauge, and Zwackʼs international competitors are expected to step up their marketing in Hungary, it added.

The board will propose a dividend of a HUF 1.73 bln dividend on its 2015/2016 business year at an annual general meeting on June 28, the agenda for the meeting shows, according to MTI. The dividend calculates as HUF 850 per share.