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Gyulai Húskombinát still loss-making as market contracts

Gyulai Húskombinát, one of Hungary's oldest and most famous sausage makers, made losses again last year as the market contracted and its sales fell, CEO János Ruck said on Monday.

Gyulai Húskombinát made the losses in spite of cutting costs by HUF 170 million and spending more than HUF 400 million to rationalize production. The domestic food market contracted more than 13% in 2010 and the company's sales of finished products, about 10,000 tons a year, fell by about the same amount, he added.

This year, Gyulai Húskombinát hopes export sales, especially in Russia, will boost revenue. It projects sales will climb to HUF 1-1.5 billion and it plans to start a second shift from April, adding 30-40 workers to its current staff of 400.