The Eastern Tobacco Company released its audited review for the fiscal year ending June 2001. The results report an increase in NAI by 3.8 percent to LE 238.9 million ($56 million) from LE 230.2 million ($54 million) recorded for the fiscal year of 2000. Revenues witnessed an 8.7% increase to LE2.17 billion ($517 million) compared to LE 2.0 billion ($471 million) in the comparable period in 2000. This was backed by a significant increase in exports, in terms of both volumes and value. However, COGS/Revenues increased to 67.3 pecent versus 66.8 percent as a result of recent currency devaluation.
Exports have witnessed a remarkable increase during the 2001 fiscal year recording 1.97 billion ($447 million) exported cigarettes compared to 0.94 billion cigarettes in 2000. The company’s total exports surged 73% to LE 80.7 million ($19 million) from LE46.7 million ($11 million) in the same period last year. This was mainly attributed to increasing exports of spare parts and tires with Eastern having established itself as an acting export agent for the sale of these products.
Eastern expects their revenue to increase to LE 2.3 billion ($541 million) in the fiscal year of 2002. While they estimate the Egyptian currency to depreciate, they do not expect to be greatly affected however, they are expecting to feel a significant negative impact as all of the company’s raw tobacco and packaging materials are imported. (Mena Report)
© 2001 Mena Report (www.menareport.com)
