HUNGARY: Dreher profits knocked back by austerity measures
SABMiller's Hungarian subsidiary has warned that recent economic and political developments in the country will hit profits this year by almost a third.
At a press briefing in Hungary today (25 September), the managing director of Dreher Breweries, Hector Gorosabel, said that the introduction of the country's 'austerity programme' this year would take about 30% off the unit's profits in 2006.
"We knew it was going to be a tough year," Gorosabel said, "but we didn't have an appreciation of the extent of it."
Gorosabel was quick to add, however, that the unit will offset the drop through pre-planned measures. "We feel pretty confident that we can offset the points of the austerity programme," he said. "Due to our cost-managing programme, we expect to hit our forecasted figures, which we announced in January."
Among the measures introduced as part of the country's austerity programme are a 7% hike in excise taxes, a rise in corporation tax from 15% to 25% and an increase in employer healthcare contributions from 4% to 6%.
Dreher has reduced its workforce by around 10% in recent years, Gorosabel noted.
Hungary has hit the headlines in the last week, with protestors calling for the resignation of the president following the leaking of a transcript in which he said the government had been lying to the populace.
Having recovered from a tax scandal in 2005 and now back in growth, the privately owned Brazilian brewer Primo Schincariol has become a takeover target for international players keen to expand their p...
Analysts have poured cold water on the prospect of brewing giant SABMiller making a move for Magners cider owner C&C Group....
SAB Ltd soft drinks subsidiary ABI is to invest ZAR100m (US$13.5m) in expanding its carbon dioxide facilities to minimise its reliance on external suppliers....
Miller Brewing has launched a fresh US television campaign that promotes flagship brand Miller Lite as "better beer"....
Heineken has admitted it needs to get a brewery up and running as soon as possible in South Africa after winning back the local rights to beer brand Amstel. The Dutch brewing giant told just-drinks to...
SABMiller's subsidiary in Panama has offloaded its PepsiCo bottling business in Costa Rica to local brewer Cerveceria Costa Rica (CCR)....
Heineken has won back the rights to beer brand Amstel in South Africa from brewing rival SABMiller. The Dutch brewing giant regained control of the brand after an arbitration panel ruled that SABMille...
The sale of one of Carlsberg's two breweries in Italy signals a stronger focus on the premium end of the market, according to the head of the Danish brewer's business in Western Europe. Speaking to ju...
- A-B InBev and its SABMiller divestments - Focus
- SABMiller in Cent'l & E Europe - What is for sale?
- Paddy Irish whiskey - The Facts
- Is the wine industry confusing its consumers?
- Where does AB InBev see the future of beer?
- Pernod Ricard to widen Our/Vodka sales reach
- Remy Cointreau names new Travel Retail exec
- Leonardo DiCaprio joins Runa drinks board
- Pernod in talks to sell Paddy whiskey to Sazerac
- Private equity poised for SABMiller Europe buy?
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global travel retail insights - market forecasts, product innovation and consumer trends
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Carbonates in India
- Consumer and Market Insights: Spirits Market in the US