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Revenue of state-owned wineseller falls about 10% in 2009

Revenue of state-owned wineseller Tokaj Kereskedőház fell about 10% to HUF 3.2 billion in 2009, but the company still broke even, CEO István Kiss said at a press conference.

Kiss attributed the HUF 400 million drop in turnover to difficult economic circumstances.

Tokaj Kereskedőház's domestic sales fell 15%, but exports rose 8%. Domestic sales generate 60% of the company's revenue and exports sales account for 40%. About 80% of exports go to markets in Central and Eastern Europe, but the company has made breakthroughs in China and the United States. It will soon deliver 250,000 bottles of the Tokaj region's aszu-type dessert wine to the US.

Tokaj Kereskedőház made almost 60,000 hectolitres of wine from 11,000 metric tons of grapes in 2009, or about one-third of the total grown in the Tokaj region. Most of the grapes came from the company's 2,000 winegrowing partners. Some 600 tons came from the company's own 70 hectares of vineyards.

Capital expenditures came to HUF 120 million in 2009, well under the planned HUF 300 million because of the economic crisis. Capital expenditures over the past three years come to about HUF 1.4 billion.

Tokaj Kereskedőház expects revenue to be flat in 2010.

Answering a question, Kiss said the company does not receive any support from the state. (MTI – Econews)