The data are not audited (either those prepared according to the IFRS standards or those according to the Hungarian accounting rules).
Total gross sales of the Company stood at HUF 4,609 million, a year-on-year decrease of 0.6%. Net sales were HUF 2,783 million, a year-on-year increase of 2.1% (HUF 2,727 million).
Net domestic sales were up by 2.3% (a year-on-year increase from HUF 2,426 million to HUF 2,480 million). Within domestic sales, the turnover of own-produced goods increased by 3.1%. Domestic sales of premium products increased by 6.3%; the net sale of quality products increased by 2.7%. The sales of the non-branded portfolio decreased by HUF 31 million ( 77.7%). The Company terminated producing non-branded products at the end of last year and discontinued its sale in June 2014. This termination caused additionally a significant drop in excise tax.
The net earnings from traded products decreased by 1.2%.
Market research data in April-May 2014 indicate a 6.2% increase on the Hungarian spirits market compared to the same period last year. However that is only because this year Easter fell on the second half of April while in 2013 it fell on March. If we look at the market research data of February–May, there is a volume decrease of 1%. Based on data of the last two years, the rate of market decline is lower than in earlier periods, and this year it may drop to a few percent, compared to the earlier 10%.
Export earnings amounted to HUF 302 million – practically the same as a year before (+0.5%).
Whiles net earnings increased by 2.1% the material costs increased slightly faster by 3.1% due to the weakening of the forint. Consequently the gross profit increased by 1.3% (HUF 20 million).
Employee benefits expense increased by HUF 50 million (8.2%). The Annual General Meeting of the Company that took place on 26 June, 2014, decided on the payment of a dividend of 2500 HUF per share (last year dividend was 775 HUF). Significant part of this unusual high dividend is founded by the cumulative retained earnings of the Company. According to IFRS, dividends paid after liquidation preference shares is a personnel type of cost, therefore the increase in the dividend pushed up the amount of personnel type of costs by HUF 60 million. Without this item, personnel type of costs remains the same.
That the other operating expenses decreased by HUF 81 million (13.9%) is due in the first place to the fact that last year the Company sponsored various sports and cultural organizations by supporting them with HUF 50 million and such sponsorship did not occur in the first quarter of this year. Such sponsorship entitled the Company to tax allowance and that explains why the Company had to pay a lower tax last year and why this year the tax obligation has considerably risen.
Other operating income increased by HUF 34 million (39.6%) because the brand owners of the distributed products increased their marketing expenditures compared to the base, so Zwack Unicum Plc. invoiced them at a higher rate for the reimbursement.
The net financial income decreased by HUF 21 million (-40.9%). Though on the average the net funds of the Company showed a year-on-year increase of 10%, the deposit interest rates were halved as a consequence of the decrease in the base interest rate.
The Company’s profit after taxation according to the International Financial Reporting Standards (IFRS) stood at HUF 335 million, a year-on-year decrease of 2.5% (previous: HUF 344 million).
Within current assets, trade and other receivables showed a year-on-year decrease of HUF 870 million (25.4%) however the cash and cash equivalents increased by HUF 1,084 million (21.8%). That was mainly because last year the Company had a deposit of HUF 590 million tied up for a period longer than three months – which has to be posted among the trade and other receivables and not in the line of cash and cash equivalents – whereas this year the Company did not have such a deposit. Consequently, all its deposits are posted in the line of cash and cash equivalents.
The HUF 3,516 million (51%) drop in retained earnings is the result of the higher dividend payment than the profit. Dividends are paid in July, 2014, therefore on 30 June, the current year higher dividend increased the trade and other liabilities balance by HUF 3,450 million compared to the last year. In the current cash-flow report the total payable dividend appears on the other changes line.
In the first quarter of this business year the Zwack Unicum Plc. spent HUF 154 million on fixed assets, and the investments were of a supplementary character and complied with the plan.
The Company has 240 employees (at the end of the 2013/2014 business year it had 234 employees and in the corresponding period of last year it had 242 employees).
This Interim Management Report for the first quarter of the business year has been made according to the relevant accounting regulations and the financial statements made on the basis of our best knowledge, and they are in accordance with both the Hungarian and the international standards. It gives a truthful and reliable account of the assets, liabilities, financial standing and profits of Zwack Unicum Plc. This business report gives a reliable picture about the Company’s situation, development and performance and it includes the major risks and factors of uncertainties. To make this report comparable with earlier ones, it carries figures in compliance with the International Financial Reporting Standards.
Additional information:
– There was no change in the ownership structure of the Company.
– There was no change in the organisation of the Company in the first quarter of the 2014/2015 business year.
– The Company still has no own shares.
5 August 2014
On behalf of the Board of Directors of Zwack Unicum Részvénytársaság: Sándor Zwack, Chairman and Frank Odzuck, Chief Executive Officer
