MOHU, the Hungarian waste management company, reported an income of 33 billion HUF (approximately 96 million USD) from unreturned bottles, benefiting from a regulatory framework that allows it to earn a gross 50 HUF deposit for each bottle not returned.

This income is allocated to the company's collection system.

Despite this substantial revenue, MOHU declared an overall loss of 50 billion HUF for the previous fiscal year.

In Hungary, a unique system operates where the waste management company receives the deposit fee at the point of sale, rather than tied to the actual collection of returned bottles.

This model allows MOHU, a subsidiary of MOL, to receive funds before fulfilling the return service.

As a result, MOHU profits from every unreturned bottle, as noted in recent reports.

Specifically, MOHU attributes 32.9 billion HUF of its revenues to the fact that a significant number of deposit bottles were not returned.

In its financial statement, the company classified the income from unreturned bottles as 'other revenues'.

Many localities in Hungary still lack adequate infrastructure for bottle returns, and MOHU has no direct financial incentive to increase the number of return points (REpoints), since its revenue is derived from the total number of bottles distributed rather than those returned.

The financial structure leads to an increase in profit whenever a bottle remains unreturned, without additional return-related costs.

The operational model followed in Hungary contrasts sharply with deposit return systems in other European Union member states, where typically non-profit entities handle recycling and refunds based on actual returns.

In this case, a profit-driven company receives payment at the start of the process, funded by manufacturers.

Further analysis conducted prior to this reporting estimated that around 800 million bottles went unreturned last year.

An organization focusing on this system projected a 48% return rate for 2024, while it reasonably anticipates a 77% return rate for the current year, suggesting that over 30 billion HUF could still remain with MOHU.

Moreover, the net amount reported by MOHU, 32.9 billion HUF, incorporates the government's collection of value-added tax (VAT) from the gross deposit fee.

The company indicates that this money must be reinvested in enhancing the efficiency of the deposit return system, as mandated by regulations.

Despite these revenues, MOHU faced a net loss of 50 billion HUF last year, with total revenues standing at 377 billion HUF, including 2.3 billion HUF from exports related to waste processing.

The reported income from unreturned bottles is listed under a different revenue category, highlighting the distinct financial challenges faced by the company.