Eastern Co posts LE 1.7B profit in FY16/17



Wed, 26 Jul 2017 - 10:39 GMT


Wed, 26 Jul 2017 - 10:39 GMT

Cigarettes - Pixabay

Cigarettes - Pixabay

CAIRO – 26 July 2017: Eastern Company’s net profit rose 17.8 percent to LE 1.7 billion ($94.8 million) in the fiscal year of 2016/17 compared to LE 1.47 billion in the year-ago period, a Wednesday statement said.

Revenues increased 37.7 percent to reach LE 10.5 billion in FY 16/17 from LE 7.7 billion in the previous fiscal year.

On Tuesday, the company expected its

revenues for FY 17/18

to rise LE 300 million ($16.7 million), as a result of the price hikes of various other cigarette brands.

The company noted that the price increases are expected to cover a part of the production cost. In addition, they forecasted revenues of LE 12.2 billion in the estimated budget of the next fiscal year.

Earlier this month, Eastern Company

raised the price of three cigarette brands

from 4.2 – 17.6 percent (LE 0.50 – LE 2.25, $0.028 – $0.126).

The prices were increased as follows: Cleopatra King Size from LE 10.50 to LE 11.50, Cleopatra Queen soft pack from LE 12 to LE 12.50, and Cleopatra Super from 12.75 to LE 15.

The three brands are the most popular among the low-income class in Egypt.

The company raised the prices to curb the increase in the production costs, Eastern Co’s Chairman Mohamed Othman Haroun said.

Haroun added that the paper packs’ prices were increased amid the decrease in the stock imported at LE 9 per U.S. dollar, but the production necessities were imported at LE 18 per U.S. dollar.



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