Chio Magyarorszag Elelmiszeripari’s revenue declined by 5% in 2011

2012-02-01



Snack producer Chio Magyarorszag Elelmiszeripari recorded HUF 11.6bn (€39m) revenue in 2011, a decline of 5% in contrast with its revenue recorded in 2010. Company executives consider the new excise tax legislation to be the main reason behind the shrinkage in revenue. As Central Europe Retail Update informed on a previous occasion, the Hungarian government introduced a new excise tax on unhealthy food products including chips, which has boosted the price of this product category by 15-30%. Starting from the year 2012 the excise tax on chips products was raised from the previous HUF 200/kg (€0.67) to HUF 250/kg (€0.84).
Robert Merkler, the company’s chief executive officer (CEO), forecast a 1-1.5% decline in the production volume of Chio Magyarorszag Elelmiszeripar. He indicated, however, that the revenue of the company might rise by 3% due to the rise in the export sales for the year 2012. The company controls 22% of the Hungarian crisps market.