Zwack profit up despite health tax on falling costs
Zwack Unicum, Hungaryʼs best-known spirits maker, posted after-tax profit on Tuesday of HUF 711 mln in the first half of its business year that ended on September 30, up 21.2% from a year ago, as the fall of net revenue slowed and costs were kept down.
In the first quarter of its business year, Zwackʼs after-tax profit grew 6.1% from a year earlier.
Gross sales increased 2% to HUF 9.435 bln but sales net of taxes fell 1.3% to HUF 5.525 bln in the first half, after falling 8.4% in the first quarter, the companyʼs un-audited earnings report according to IFRS showed yesterday.
A public health product tax was levied on a wide range of spirits as of January 1 of this year.
But Zwack reined in operating costs by 27% in the first quarter, and operating expenses were down 0.3% on average in the first half to HUF 2.698.
Operating profit was up 23.3% in the first half to HUF 939 mln, after rising 25% to HUF 460 in the first quarter.
Net domestic sales were down 1.7% to HUF 4.882 bln with sales in the Diageo portfolio dropping 9.5% and others up 5.8%, while export earnings increased 1.7% to HUF 643 mln.
Late June, shareholders approved to pay a HUF 1,200-per-share dividend on the 2014/15 financial year that ended on March 31.
In its previous financial year, Zwack had after-tax profit of HUF 1.77 bln, 16.7% more than in the preceding year, according to Hungarian Accounting Standards.
According to IFRS, it had after-tax profit of HUF 1.71 bln, up 14.8% from the previous year.
Zwack has tapped profit reserves to top up its dividends for several years.
Zwack Unicum is a Standard category issuer on the Budapest Stock Exchange.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.