The data are not audited (neither those prepared according to the IFRS standards nor those prepared according to the Hungarian accounting rules).
Total gross sales of the Company amounted to HUF 11 021 million, a year-on-year increase of 16.8%. Net sales (sales revenues excluding excise tax and public health product tax) were HUF 6 452 million, a year-on-year increase of 16.8% (HUF 927 million).
Excise tax increased steeper than gross sales due to changes in the mix of products sold.
Net domestic sales showed a year-on-year increase of 17.7% (HUF 863 million). (That is, HUF 5 744 million instead of HUF 4 882 million in the previous year.) The first quarter’s spike (23.9%) was followed by smaller growth but it continued being dynamic (12.3%). During the first half year sales in the off-trade increased by nearly 30% and sales in the on-trade increased by over 10%.
Within domestic sales, the net sales of own-produced goods had a year-on-year increase of 16.3%. Domestic sales of premium products increased by 5.4% and the net sales of quality products rose by 49.1%. Our Kalinka and St. Hubertus brands performed especially well.
There was a year-on-year increase of 23.9% in the net earnings from traded products. Broken down, sales of the Diageo portfolio shot up by 36.2%, while those of other products traded went up by 6.8%.
Market research figures for April–July 2016 indicate that, expressed in volume, the Hungarian market of spirits increased by 2.4%. Growth has been remarkable in the premium and quality segments (12.3% and 11.8% respectively) however the volume of the non-branded segment decreased by 9.2%.
Export earnings were HUF 707 million, which is a year-on-year increase of 10.0% (HUF 64 million). Sales in Germany, Romania and the duty-free segment continued dynamic growth while there was a year-on-year decrease in the USA (the sale of both Unicum and pálinka went down).
The increase of 16.8% (HUF 380 million) in the material cost of goods sold was due mainly to changes in volume.
The gross margin of sales was identical with that a year before (59.1%)
Employee benefits expense increased by HUF 58 million (4.8%). At the start of the business year the Company brought about an across-the-board average pay hike of 3.8%. The headcount also grew, and those two factors caused increase in the employee benefits expense.
The other operating expenses increased by HUF 92 million (7.3%) due mainly to increase in marketing expenditure. The growth of expenses was considerably lower than the increase in sales.
The other operating income decreased by HUF 25 million (-6.8%). This is due to the fact that the Company had a lower exchange rate gain than in the first half of the previous business year.
The balance of financial income and financial expense decreased by HUF 9 million (-62.3%). Much of that decrease was due to the lower deposit interest rates, and the average level of cash in hand and in banks was also lower than a year before by about 10%.
The Company’s profit after taxation according to the International Financial Reporting Standards (IFRS) stood at HUF 1 007 million, a year‑on‑year increase of 41.6% (last year same period: HUF 711 million).
As the Company’s track record shows that in the first half of a business year the Company produces between 45 and 50% of the total annual profit after tax, the Management predicts that this year’s results are to moderately outperform the planned target.
In the first half of the business year the Zwack Unicum Plc. spent HUF 216 million on fixed assets. Those investments were of a supplemental type and took place as planned.
The Company has 234 employees (at the end of the 2015/2016 business year it had 218, and in the corresponding period of the previous business year it had 219). Growth in headcount is due to mainly two factors:
– formerly outsourced activities now executed by our own newly employed workforce
– the marketing department has increased in size.
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 2016–2017 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 2016
On behalf of the Board of Directors of Zwack Unicum Részvénytársaság: Sándor Zwack, Chairman and Frank Odzuck, General Manager
Zwack Unicum Plc’s Report is published and accessible at:
