FILE PHOTO: An illustration picture shows cigarettes in their pack, October 8, 2014. REUTERS/Christian Hartmann/Illustration
CAIRO – 18 November 2018: Eastern Company expected 20 percent increase of its revenues in its planning budget of fiscal year 2018/2019.
In a filing to the Egyptian Exchange (EGX), the company, headed by Managing Director Hany Aman, explained that it anticipates that the increase will come through hike in exports and local sales.
With regards to the Finance Ministry’s decision to increase the storage of tobacco to two years instead of one year, the company said that this decision will have five benefits.
First, it protects the company from fluctuations in the fumes markets, especially as all countries that planet tobacco depend mainly on rain in agriculture.
Second, some kinds of tobacco need to be stored to improve their smoking characteristics (stage of aging), especially Eastern fumes, according to the statement.
Tensions and wars were the third benefit cited in the statement, as they are one of the reasons behind increasing prices of tobacco.
According to the statement, the negotiation center will be supported by having a stock in their warehouses during the various tenders for global smoke markets.
Finally, the decision will help in seizing appropriate opportunities to buy from financial markets at lower prices than usual and the two-year period helps to capture these opportunities.
The company accomplished a profit of LE 991.18 million during the first three months of 2018, compared to LE 1.04 billion during the same quarter of 2017.
Eastern Co. is a public company, listed on EGX since September 1995. It operates within the food, beverage and tobacco sector focusing on tobacco. It was established in July 1920.