Spirit branch has record income despite low investment

APA - Austria Presse Agentur
22-02-2005, 16:16

Warsaw (Puls Biznesu) – After five years of losses, the spirit producers had record USD 90-100 m (EUR 68.3-95.8 m) of income in 2004. It is thanks to lower excise duty. Although the duty was lowered in 2002, 2003 was not profitable for the producers yet, and they had USD 7 m of losses. Last year was much better: in the first six months, alcohol producers earned USD 46 m.

Warsaw (Puls Biznesu) – After five years of losses, the spirit producers had record USD 90-100 m (EUR 68.3-95.8 m) of income in 2004. It is thanks to lower excise duty. Although the duty was lowered in 2002, 2003 was not profitable for the producers yet, and they had USD 7 m of losses. Last year was much better: in the first six months, alcohol producers earned USD 46 m. The second half of the year was not worse. In 2001, the branch had record loss of nearly USD 50 m. The level of income noted last year, was recently achieved ten years ago.

Companies’ CEOs believe, good results are the effect of lower income duty. ‘thanks to that, we increased sales of 100 percent alcohol beverages from 71.2 m litres in 2002 to 102.2 m in 2004’, Henryk Tomasik, deputy CEO of Polish Spirit Producers Council said. He added, that the excise duty inflow to the budget rose from PLN 3.88 billion in 2002 to PLN 4.6 billion (EUR 1.1 billion) last year.

Although results have improved, the companies have not increased investments. They amount to USD 10-15 m a year. In 2002 it was only USD 5.5 m but in the 1990ies they amounted to USD 25-30 m a year. Companies explain they do not invest much because they are not using their capacities.

(PLN 1 = EUR 0.252)

(USD 1 = EUR 0.758)Poland/Enterprises/Beverages

 

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Podpis: APA - Austria Presse Agentur

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