ZVS Holding donated €80m in profit to CSG

Opposition party PS accused Dubnica-based ammunition maker ZVS Holding, half-owned by the state and half by Czech group CSG (Michal Strnad), of losing out on €80m in profit last year by selling ammunition to affiliated company MSM Export. ZVS reportedly sells artillery shells for €1,500 to €1,800 apiece, and MSM resells them after assembly for €3,500; the margin on ZVS's own production thus came to just 8%, compared with 27% at VOP Nováky, which is fully owned by CSG. ZVS Holding rejects the accusations and says its transfer prices are fair. ZVS posted a net profit of €36.6m on revenue of €231m last year. Defense Minister Robert Kaliňák argues that the company's profit rose 213% last year and that it paid the state a €15m dividend.

(seznamzpravy.cz)