After-tax profit of Zwack Unicum, Hungaryʼs best-known spirits maker, fell 21% year-on-year to HUF 422 million in the first quarter of its business year starting April 1, state news wire MTI reported.
The Zwack earnings report, released after the closing bell on the Budapest Stock Exchange Thursday, shows direct costs of sales climbing just a little under 1% to HUF 1.28 billion, lifting gross profit 4% to HUF 1.96 bln. The after-tax profit decline, however, was more than 20% year-on-year due to employee pay rises and benefits and higher marketing costs.
Payroll costs jumped 17% on a 6% pay rise and a bonus equivalent to two weeksʼ pay. Other operating expenses climbed 11% to HUF 668 mln because of higher marketing costs, Zwack said.
Zwackʼs revenues, net of taxes, rose almost 3% to HUF 3.24 bln in its first quarter.