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 4,346 million, which is 5.7% lower than in the previous year. Net sales (sales revenues excluding excise and public health product tax) were HUF 2,550 million, a year-on-year decrease of 8.4% ( HUF 233 million).
Net domestic sales were down from the previous year by 8.7% (-HUF 217 million). That is a year-on-year decrease from HUF 2,480 million to HUF 2,263 million.
Within domestic sales the turnover of own-produced goods had a year-on-year decrease of 7.7%. Domestic sales of premium products decreased by 2.3%; the net sales of quality products decreased by 24%.
In the net earnings from traded products there was a year-on-year decrease of 12.9%. In detail, sales of the Diageo portfolio dropped by 20.1%, and those of other products traded levelled off.
As detailed in our previous reports, this considerable decrease of domestic sales occurred because the public health product tax (NETA) was levied on a wide range of spirits as of January 1st 2015. Therefore, a number of our trade partners purchased a stock for 3-5 months in December 2014 from these products. The spill-over effect could be felt even in the first quarter of the current business year.
Market research as of April–May 2015 indicates that, expressed in volume, the Hungarian market of spirits decreased by 7.6%. The market of premium products increased by 2.4%, the quality segment decreased by 1.9% and that of the non-branded products decreased by 15.7%.
Export earnings were HUF 287 million, which is a year-on-year decrease of 5.3% ( HUF 16 million).
The decrease of 15.4% (-HUF 183 million) in material costs of goods sold was due mainly to change in volume.
The gross margin of sales improved by 3.3 percentage points (from 57.3% to 60.6%) owing to higher sales prices and favourable changes in the product mix.
Employee benefits expense decreased by HUF 43 million (6.5%). 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.
The depreciation charge and the other operating expenses remained mostly the same as in the previous business year.
The other operating income increased by HUF 47 million (39.9%). Most of this increase is due to the higher cost reimbursements because the brand owners of the distributed products increased their marketing expenditures compared to the last year.
Interest income decreased by HUF 20 million (65.8%). 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 355 million, a year-on-year increase of 6.1% (previous: HUF 335 million).
The HUF 665 million (19.7%) drop in the profit reserves is the result of the higher dividend payment than the last year’s profit. The dividend will be paid in July, which means that in the Balance Sheet dated June 30 the dividend to be paid is referred to as a liability reported under Trade and other liabilities. Compared to the last year figure the decrease of HUF 2,410 million in that line of the Balance Sheet is because the dividend payable is smaller than that was paid in 2014.
In the cash-flow statement we are showing the liability: dividend to be paid (HUF 2,4 billion) as an increase in Trade creditors and a decrease under ‘Other changes’.
In the first quarter of the business year the Zwack Unicum Plc. spent HUF 234 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 has spent HUF 108 million on the purchase of a new bottling machine (the total cost of that project will amount to HUF 180 million) and HUF 35 million has been spent for the installation a new extracting technology. Both investment projects support the technological upgrade and the effectiveness of production.
The Company has 220 employees (at the end of the 2014/2015 business year it had 218, and in the corresponding period of last year it had 240 persons).
This Interim Management Report for 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.
– During the first quarter 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.
