The data are not audited (neither those prepared according to the IFRS standards nor those according to the Hungarian accounting rules).
The Company gross revenues amounted to HUF 9,435 million, which is 2.0% higher than in the previous year. Net sales (sales revenues excluding excise and public health product tax) were HUF 5,525 million, a year-on-year decrease of 1.3% (‑HUF 72 million).
Net domestic sales were down from the previous year by 1.7% (-HUF 83 million). That is a year-on-year decrease from HUF 4,965 million to HUF 4,882 million.
Within domestic sales the turnover of own-produced goods had a year-on-year decrease of 1.2%. Domestic sales of premium products inreased by 2.9%; the net sales of quality products decreased by 11.4%.
In the net earnings from traded products there was a year-on-year decrease of 3.6%. In detail, sales of the Diageo portfolio dropped by 9.5%, while those of other products traded went up by 5.8%.
Market research as of April–July 2015 indicates that, expressed in volume, the Hungarian market of spirits decreased by 8.7%. The market of premium products decreased by 1.1%, the quality segment decreased by 0.3% and that of the non-branded products decreased by 16.9%.
The market tendencies in product segments (premium and quality segments) that really matter for the Zwack Unicum Plc. – the public health product tax (NETA) was levied on a wide range of spirits as of January 1st 2015 – were a little bit less harmful than expected.
Export earnings were HUF 643 million, which is a year-on-year increase of 1.7% (+HUF 11 million).
The decrease of 6.3% (-HUF 152 million) in material costs of goods sold was due to several factors. Purchase prices went down (affecting, for instance, pure alcohol and bottles), and changes in volumes and the product mix also played a role.
The gross margin of sales improved by 2.2 percentage points (from 56.9% to 59.1%) owing to higher sales prices, decrease in the prices of raw materials and favourable changes in the product mix.
Employee benefits expense decreased by HUF 108 million (8.3%). The Annual General Meeting of the Company, held on 25 June 2015, decided to pay dividend at HUF 1200 per share (as compared to the previous year’s outstanding dividend of HUF 2500 / share). According to IFRS, dividends paid after liquidation preference shares is a personnel type of cost; consequently, the lower dividend brought down payment to personnel by HUF 45 million. In July 2014 the Company paid an unscheduled bonus to its employees, which increased payment to personnel by about HUF 70 million that time. Those two factors were behind said year-on-year decrease in payment to personnel.
The other operating expenses increased by HUF 96 million (8.3%) due to increase in marketing expenditure. As compared to the first half of the previous business year, marketing expenditure went up on Unicum (in Hungary and in Italy) and on St. Hubertus and the brands of Diageo.
The other operating income increased by HUF 91 million (32.4%). Of the increase, HUF 64 million was due to the higher cost reimbursements because the brand owners of the distributed products increased their marketing expenditures compared to the last year. The remaining HUF 27 million was due to increase in the exchange rate gain.
The net financial income decreased by HUF 26 million (64.6%). In July 2014 the Company paid HUF 5 billion in dividend. Thus in the first quarter of the previous business year Cash and cash equivalents was considerably bigger than in the first quarter of this year. Besides, presently the deposit interest rate is considerably lower than a year before.
The Company’s profit after taxation according to the International Financial Reporting Standards (IFRS) stood at HUF 711 million, a year-on-year increase of 21.2% (previous: HUF 587 million).
The HUF 561 million (15.5%) drop in the profit reserves mainly is the result of the higher dividend payment than the last year’s profit.
Nearly half of the increase in trade and other liabilities is due to tax liabilities.
In the first half of the business year the Zwack Unicum Plc. spent HUF 387 million on fixed assets. Spending in this category was higher than in previous years because the Company has started two major technological projects. The Company spent HUF 174 million on the purchase of a new bottling machine and HUF 35 million was spent for the installation a new extracting technology. Both investment projects support the technological upgrade and the effectiveness of production.
The Company has 219 employees (at the end of the 2014/2015 business year it had 218, and in the corresponding period of last year it had 227 persons).
This Quick Report for the first half of 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.
– During the first half of the 2015–2016 business year there was no change in the organization of the Company.
– The Company does not possess shares of its own, just as before.
3 November 2015
On behalf of the Board of Directors of Zwack Unicum Részvénytársaság: Sándor Zwack, Chairman and Frank Odzuck, Chief Executive Officer.
Zwack Unicum Plc’s Report is published and accessible at:
