SPAR suffered from the extra tax

By: Trademagazin Date: 2024. 05. 31. 11:26

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The loss of Spar’s Hungarian subsidiary increased significantly last year, even more than previously expected. The company’s management initially estimated the loss at HUF 13 billion, however, according to the published report, this amount amounted to HUF 18.2 billion.

Spar’s revenues increased compared to the previous year, rising from HUF 766 billion to HUF 882 billion. However, this increase fell short of the official inflation rate of 17.6 percent, meaning that although the company raised its prices, its revenue growth could not keep up with the rate of currency deterioration.

The company’s material expenditures also increased, from HUF 638 billion to HUF 744 billion, which reflects the jump in procurement costs from HUF 471 billion to HUF 547 billion. This is an increase of 16.1 percent, so procurement costs have increased even more than prices. In addition, more had to be paid for wages and contributions, a total of HUF 94 billion, compared to HUF 83 billion the previous year.