Zwack Unicum Net Sales Up by 8.6% Year-on-Year

Total gross sales of the Hungarian liqueurs and spirits producer Zwack Unicum were HUF 18,234 million, a year-on-year increase of HUF 1,014 million (5.9%), according to the half-year report of the company. During the first half of the business year, they amounted to HUF 165 million. Net sales (that is, sales revenues minus excise
tax and revenue from DRS deposit fee) were HUF 11 289 million, a year-on-year increase of 8.6% (HUF 890 million).

In the first half of the business year, the net domestic sales of products had a year-on-year increase of HUF 472 million (5.3%). Net sales of own-produced goods in the domestic market had a year-on-year increase of HUF 565 million (8.5%) (HUF 7240 million instead of HUF 6675 million). Broken down in more detail, sales of premium products increased by 11.1% while sales of the quality products hardly edged upwards. Within the premium category the sale of products belonging to the Unicum brand increased by 12,8% and that of products belonging to the Kalumba brand increased by 37,1% while that of other drinks in the premium category increased to a lesser extent.

Net sales of traded products had a year-on-year decrease of 4.2%. Broken down in more detail, the revenues of the Diageo portfolio went down by 1.4% and the revenues of the other traded products decreased by almost 18%. In the latter category the revenues of wines came down more than the average decrease for that category.

According to the April–September 2024 market research data for the retail turnover, the Hungarian country-wide taxed spirits market decreased by 4.1% in volume and stagnated in value. In the same period, this Company’s sales of spirits in the retail category had a year-onyear increase of 6.5% in volume and a year-on-year increase of 12.6% in gross value.

The grace period of the deposit-refund system (DRS), which was introduced in Hungary in January 2024, expired on June 30, 2024. The company had to fulfil tough tasks: handle related administration and IT solutions, packaging, the procurement of labels, and organize related production. During the first quarter the Company managed to complete most of the task of introducing into the market its newly labelled, returnable bottles – carrying the label showing that consumers are entitled to a deposit of HUF 50. The Management of the Company coordinated the replacement of bottle labels successfully and on time. That is why the introduction of the DRS system had little influence on the size of the turnover in the first quarter of the business year.

Following a relatively weaker first quarter of the business year, during the second quarter the volume of products sold in the domestic market reached the level of the previous business year while its sales revenue was by 6.1% higher. The Company’s sales revenue in retail continues increasing thanks mainly to the dynamically growing discount channel. However, volumes continue decreasing in the wholesale and revenues from that category were at par with that of the previous business year.