Zwack profit slips on health tax, base effect
After-tax profit of Zwack Unicum, Hungaryʼs best known spirits maker, fell 12% to HUF 2.0 billion in Q1-Q3 of its business year ending March 31, an earnings report released late yesterday shows.
Profits fell year-on-year following the introduction of a public health product tax and a decline in revenue.
Gross sales dropped 6% to HUF 18.3 bln, but Zwack noted that sales spiked in the base period as trading partners rushed to stock inventories before the introduction of the public health product tax.
The last quarter of the 2015/2016 business year “promises to be better than the same period last year”, Zwack said in the report.
Zwack paid a little more than HUF 1 bln on the public health product tax in Q1-Q3.
Sales net of taxes dropped almost 8% to HUF 10.7 bln.
Material cost of goods dropped 11% to HUF 4.5 bln.
The gross margin came to HUF 6.2 bln, down 5%.
Zwack said domestic sales fell almost 8% to HUF 9.6 bln. Export sales dropped 7% to HUF 1.1 bln.
Zwack had total assets of HUF 11.9 bln at the end of 2015, down 16% from a year earlier. Non-current liabilities came to just under HUF 400 mln.
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