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13th March, 2025

Dietary supplement producer completes Ft 5bn upgrade



BioTechUSA, one of Europe’s largest manufacturers of dietary supplements and specialty foods, has carried out a Ft 5.5 billion upgrade at its production hub in Szada, Pest county as part of a broader Ft 9 billion investment programme, the largest in the company’s history.

Testing is underway at the new facility, with full-scale production expected to begin in September.

The investment includes the installation of a highly automated production line for multi-layered protein bars, which will triple the company’s annual bar production capacity to 75 million units.

Solar panels installed at the Szada facility will cover 30% of the plant’s electricity needs.

The company has invested more than 5% of its revenue in operational development while launching 25 new products and opening 20 new stores last year.

It also expanded its global footprint to 103 countries and signed what it describes as a “unique regional co-operation agreement” with the Barcelona football club.

BioTechUSA’s manufacturing and logistics centres in Szada and Dunakeszi span 45,000m2 with storage capacity for 24,000 pallets, producing 20,000 tons of powder products and one billion capsules and tablets annually, in addition to the protein bars.

The company reported a record Ft 93.7 billion in revenue last year, up 3.5% from 2023, with 83% of income coming from exports.

The company currently operates in more than 100 countries through 49 webshops and 327 franchise stores, employing 1,900 people worldwide. (portfolio.hu; vg.hu; economx.hu)
13th March, 2025

Lidl warns cap on margins is unsustainable



Food retail chain Lidl has warned that the government’s plan to cap profit margins at 10% on 30 essential food products is economically unviable, adding that the company has never had high profit margins.

Prime Minister Viktor Orban has announced that the government will introduce the measures from mid-March until the end of May for companies with Ft 1 billion in annual revenue after the February inflation data showed food inflation rose to 7%.

“We have never used a high margin before, with the 10% percent ceiling and after deducting the special commercial tax, even the personnel costs are not recovered, so the offer fundamentally goes beyond economic reality”, Lidl’s communications director Judit Tozser responded to Forbes.

She said Lidl had previously engaged in discussions with the Economic Ministry and offered to apply below-market margins on certain product categories to help offset last year’s price increases that followed the end of government-imposed price caps.

In his video message, the prime minister dismissed this as insufficient, opting instead for legislative intervention to curb what he called “unjustified and excessive price hikes”, Forbes adds. (forbes.hu)
13th March, 2025

Leadership change at insurance association



The Hungarian Insurance Companies Association (Mabisz) has appointed Bence Hollo as its new president following a leadership election on Wednesday.

Hollo, who serves as chief executive of NN Biztosito, takes over from Mihaly Erdos, who had previously announced he would not seek re-election to the position.

The association’s newly formed eight-member executive board also selected Peter Zatyko, CEO of Alfa Vienna Insurance Group, to serve as vice-president. (portfolio.hu)
13th March, 2025

MBH bullish on Magyar Telekom



MBH Bank has raised its 12-month target price for Magyar Telekom shares to Ft 1,898, representing a 17% upside from current levels, while maintaining a “buy” recommendation.

The telecoms group is shifting its growth strategy away from subscriber expansion towards higher average revenue per user (ARPU), according to MBH analysts.

The company’s revised dividend policy, which allows for up to 100% of adjusted net profit to be distributed through dividends and share buybacks, is also expected to enhance shareholder returns.

The company’s financial outlook has improved as special sector taxes are phased out and inflation-linked price adjustments help stabilise revenues.

The planned spin-off of mobile infrastructure could yield euro 700 million in revenue, equivalent to 21% of Magyar Telekom’s current market capitalisation, but this will be leased back.

The company’s share price has risen by 28% this year alone. (portfolio.hu)


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