Hell Energy's Profit After Tax Down in H1 2023

After the dynamic growth of previous years, the turnover of energy and soft drinks producer Hell Energy Hungary Ltd. increased only slightly in the first half of this year, while its profit after tax decreased due to a significant loss recorded in the financial result line.

According to the consolidated financial statements published on the Budapest Stock Exchange's website on Monday, the company's net sales increased by almost four% from HUF 74.296 billion to HUF 77.060 billion in the first six months of 2023 compared to the same period last year.

The slower growth compared to previous years is due to a decline in consumption in the company's main markets. Sales volume fell by 14% year-on-year from 739 million units to 632 million units in the period under review.

The operating result reached HUF 10.958 billion, following a 59% annual increase.

On the financial result line, a profit of HUF 1.839 billion in the first half of 2022 turned into a loss of HUF 5.138 billion, with profit after tax falling from HUF 8.699 billion to HUF 5.301 billion by the end of the first half.

In line with the company's sustainability strategy, 98% of the beverage portfolio will be made from recycled aluminum by the first half of 2023, it was pointed out.

It was reported that rising raw material and energy prices could have a negative impact on the company's profitability. They will seek to mitigate risks through framework agreements with suppliers and energy traders.

Management expects the global energy drinks market to continue to expand between 2023 and 2026, with market concentration continuing.