Egypt’s Eastern Co. sees 20% hike in revenues for FY2019 budget
Egypt’s state-owned Eastern Company expected to achieve revenues up to 20 percent in its planning budget of financial year 2018/2019.
The company, headed by Managing Director Hany Aman, explained that it anticipates that the increase will come through hike in exports and local sales, the firm said in a bourse filling.
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 posted profits worth 991.18 million pounds during the first three months of this year, down from 1.04 billion pounds during the same period in 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.
Source: Egypt Today