Special tax kicks Spar into the red in Hungary for the first time in nine years
Spar Hungary's net revenue was HUF 766.2 billion in 2022, up 16% from HUF 663 billion in 2021. With food inflation at 26%, this almost certainly means that product volumes have fallen, but the conclusion cannot be that the 10 percentage point difference is fully behind the the company's turnover, as we do not know exactly how much Spar raised its prices last year.
Gabriella Heiszler, Chairwoman-CEO of Spar Hungary, previously revealed that Spar always adjusts its price hikes to be a few percentage points below the inflation rate published by the Central Statistical Office (KSH) every month.
The report also shows that the purchase value of goods sold increased by 13% (to HUF 471 billion),
which is 3 percentage points lower than the sales growth, which may have increased the company's margins.
The company's material costs increased significantly, by 56% to HUF 92 billion, while personnel expenses went up 6% to HUF 83.5 billion. Spar had nearly 12,400 full-time and 514 part-time employees last year, but this does not include employees of its franchise partners, who numbered 3,000 in 2022.
| Key figures of Spar Hungary (bn HUF) | |||
| 2021 | 2022 | change | |
| Net sales | 662.9 | 765.9 | 16% |
| Material costs | 59.3 | 92.4 | 56% |
| Services required | 62 | 69.7 | 12% |
| Purchases of goods sold | 416.7 | 471 | 13% |
| Personnel expenses | 78.5 | 83.5 | 6% |
| After-tax profit | 5.3 | -13.1 | -347% |
| Source: company report | |||
The company's loss last year reached HUF 13.1 billion, a balance sheet deterioration of more than HUF 18 billion compared to a profit of HUF 5.3 billion in 2021. Spar notes that
the increase in revenue could not offset the impact of the extra profit tax in 2022 and increased energy costs.
Trade Magazin reported that Spar's sectoral special tax amounted to HUF 26.7 billion last year, while the company's report under the heading of taxes in the other expenses line shows HUF 32.1 billion.
Cover photo: Spar
