Cairo-Mubasher: HC Securities and bonds trading in a report reviewed an update to its assessment of Sharqiya smoke company, noting its expectations for an increase in the company's revenues.
Pakinam Al-etribi, consumer sector analyst at CHC, said in a statement today that CHC's expectations for eastern smoke revenues increased by 78%, with an average of 16.9%, pointing to an increase in prices on an annual basis over the forecast period from fiscal year 22/23 to 27/28, as the board of Directors of eastern smoke approved in March 2023 Increase the retail price of domestic cigarettes by EGP 1.00-3.00 / pack, after increasing the pack price by EGP 2.00 in September 2022, to maintain operating profit margins and overcome the high cost of raw tobacco, which translated into a 34% year-on-year increase in the expected factory delivery price for the fiscal year 22/23 to EGP 5.72 / pack.
It expected a 13% increase in the local average expected factory delivery price for the period from fiscal year 23/24 to 27/28, compared to the previously expected average increase of 3.11%, assuming that the company continues to operate within the fixed tax bracket at .EGP 4.00 / pack, as the Egyptian government has not yet announced any adjustment to the fixed tax brackets.
He stressed that the United tobacco company owned by al-Sharqiya Al-Dukhan raised by 24% the factory delivery prices to an average of EGP 17.2/ pack from EGP 14.7/pack, which contributed positively to the profitability of al-Sharqiya Al-Dukhan.
Source :mubasher
