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Gyulai Húskombinát cuts losses in 2009

The beleaguered Gyulai Húskombinát, one of Hungary's famous sausage makers, closed last year with sales revenue of HUF 8 billion (€29.96 million) and smaller losses than in 2008 despite a significant deterioration in operating and financing conditions during the year, the business daily Napi Gazdaság reported on Thursday, citing company CEO János Ruck.

Both output and sales figures were roughly unchanged from 2008. Thanks to a bank guarantee obtained under preferential terms from the state-owned Hungarian Development Bank, the company received a five-year working-capital loan and was able to repay overdue debts to suppliers at the end of the year as well as part of the HUF 700 million shareholders' loan received earlier in 2009.

Operations were restructured by the end of 2009, with production concentrated in a new, more energy-efficient, unit.

Ruck expressed hope that Gyulai Húskombinát's sales and output figures would be similar in 2010 to those recorded in 2009 and that the company might turn a profit this year. This will depend on the forint-euro rate as well as retail sales, the CEO added. (MTI-Econews)