The Board of Directors of the Zwack Unicum Plc. has approved the Management’s report about the results of the Company in the 2021–2022 business year.

The data have been audited.

Analysis of the Report

Total gross sales of the Company were HUF 31 326 million – a year-on-year increase of 29.1% (that is, HUF 7 067 million). Net sales (sales revenues excluding excise tax and public health product tax [NETA]) were HUF 17 691 million, a year-on-year increase of 35.2% (HUF 4 608 million).

In the net domestic sales there was a year-on-year increase of HUF 4 133 million (36.1%). The net sales of own produced goods increased in the domestic market by HUF 2 918 million (by 33.8%) (it was HUF 11 546 million instead of HUF 8 628 million). Broken down, sales of premium products increased by 41.1% and those of quality products grew by 15.7%. The introduction of Unicum Barista – the youngest member of the Unicum line of products – was a key factor in the outstanding performance of the premium category. In addition, the sale of Zwack Unicum liqueur and Unicum Plum liqueur grew almost to the same degree, and the sales growth of super premium Unicum Riserva was nearly the same as the original Unicum.

The net sales revenue of traded products had a year-on-year increase of 43.2%. Broken down, the revenue of the Diageo portfolio increased by 40.6%, and the revenue of the other traded products grew by 69.1%. In the latter category wines and mineral waters contributed to growth in the same way.

Due to the Hungarian government’s pandemic-related measures, during the 2020-2021 business year, the Company’s net domestic sales had decreased by almost 7%. The major part of the decrease was due to plummeting sales in on-trade – which accounts for about half of the Company’s gross sales. Soon after the restrictive measures were lifted, as from spring 2021, on-trade bounced back to its usual level and has steadily levelled off. Sales during the first quarter of calendar year 2022 once again produced outstanding results both in off-trade and on-trade. Two factors need to be considered here: demand bounced back after reopening, and certain sectors of the population had higher than usual earnings due to certain government measures.

Market research data about the retail turnover for the April 2021–March 2022 period indicate that the Hungarian taxed retail trade of spirits grew by 6.0% in volume and by 13.0% in value. In the same period the sales of Zwack Unicum Plc. in the retail sector increased by 24.6%. Overall, the sales by Zwack Unicum Plc. went up by nearly 36%, which was the combined effect of the successful introduction into retail of Unicum Barista and the bouncing back of on-trade.

Export earnings were HUF 2 116 million – a year-on-year increase of 28.9% (HUF 475 million). Export sales in the fourth quarter had a year-on-year increase of 22%. Exports to Italy and Romania accounted for almost 70% of the yearly increase. As for exports to Italy, the sale of the Unicum liqueur went up by more than 40%. As for exports to Romania, the yearly earnings shot up by 50% even though sales growth in the second half of the year was somewhat modest. Thanks to the bounceback of tourism, duty-free sales increased gradually. On a yearly basis, they were below those of pre-pandemic 2019-2020 business year level by merely 26%.

The material-type expenses increased by HUF 1 413 million (27.4%). As that figure is lower than the increase in net sales – the latter being 35.2% – the gross margin ratio has a year-on-year increase of 2.3 percentage points (62.9% instead of 60.6%). The decrease in the per-unit material cost was due to a favourable change in the product mix (the sale of high-margin goods grew steeper).

The full document about Zwack’s results can be downloaded by clicking the link below:

Zwack – 2021-2022 Business Year Results