The Eastern Company, Egypt's only tobacco product manufacturer, has reported a net profit of EGP 1.35bn in the first quarter (Q1) of 2021, which ended on 31 March. The latest data reflects a 48% increase year-on-year (y-o-y) compared to the same quarter of the previous fiscal year, and an increase of 28% compared to the budget. The financial indicators showed an increase in sales, revenues and profits during the first nine months of the current fiscal year (FY) 2020/21. This came as the company achieved an increase in total gross revenues, including value added taxes, of 13.5% y-o-y, to record EGP 48.5bn compared to EGP 42.7bn during the comparison period. The local sales volumes of the Eastern Company's main brands recorded an increase of 7.4% y-o-y, shifting 50.8bn cigarettes, compared to 47.2bn cigarettes in the same comparison period. Meanwhile, the company recorded a net profit of EGP 3.89bn for the nine-month period ending on 31 March 2021, or the first nine months (9M) of the current fiscal year, reflecting an increase of 24% y-o-y. It is worth noting that the net profit for 9M of FY 2020/21 exceeded the achievements made during the 12 months of the previous fiscal year, with an increase of 2.5%. The Eastern Company recorded an increase in total revenues, including value added taxes, of 14% y-o-y compared to Q3 of FY 2019/20, to reach EGP 16bn, with an increase of 2% over the budget plan. The revenues from the local cigarette segment also achieved an increase of 14%, as local sales volumes in the quarter reached 17 billion cigarettes. Hany Aman, Managing Director and CEO of the Eastern Company, said, "The company continued to gain the fruits of its strategic move through, optimising the use of resources, maximising returns and reducing costs, whilst also exploring sales opportunities and exploiting them and converting them into plans, strategies and marketing mixes that go directly to the market." He added that the company has also managed to diversify its investment portfolio and good liquidity management by investing in risk-free fixed income instruments.
