The dollar “disturbs” the mood of smokers in Egypt again

The dollar “disturbs” the mood of smokers in Egypt again
The dollar “disturbs” the mood of smokers in Egypt again

For the third time during 2022, the Eastern Company for Tobacco (Eastern Company), owned by the Egyptian government, moved the prices of some cigarette and smoke products, starting from Wednesday, September 22 (September 22), by up to seven percent, as a result of the rise in the value of the US currency against the Egyptian pound, which caused Reflected on the cost of raw materials and production requirements imported from outside the country.

The Eastern Company notified the Egyptian Stock Exchange in an official statement of the new price plan, given that it is listed on the Egyptian stock market. From 29 pounds ($1.48) to 31 pounds ($1.59), the same value moved the prices of a pack of cigarettes brand “Viseroy”.

The dollar is one of the reasons

The spokesman for the Eastern Tobacco Company, Morsi Abu Amer, said that “the company evaluates the selling prices of the products once every three months, compared to the prices of raw materials and the cost to determine the fair price that achieves a good profit margin.”

Abu Amer explained to “The Independent Arabia” that “the increase in the exchange rate of the US dollar against the Egyptian pound by more than 25 percent since the beginning of this year has caused an increase in the prices of raw materials and production requirements that the company brings from outside the country, as it depends on imported raw materials by a percentage not.” Less than 80 percent of the volume of the product,” and pointed out that “this adds new burdens and costs, if the company does not address it by moving prices, it will inevitably achieve losses.”

read more

This section contains related articles, placed in the Related Nodes field.

For his part, Head of the Tobacco Division of the Federation of Industries, Ibrahim Imbabi, said in a press statement that “Al-Sharqiya Tobacco has moved the prices of the (Pal Mal) and (Vesroy) brands, because they are among the products they were producing in partnership with British American Tobacco, which exited from Egypt in the middle of this year. .

On the fourth of this September, the “Eastern Company” moved the prices of popular cigarettes, starting with an average of two pounds per pack, after it raised the prices of cigarettes for the “Blooming” and “Boston” brands from 19.5 pounds ($1.01) to 22 pounds ($1.12), and Marka brand. “Cleopatra” (Soft Queen) increased from 18.5 pounds ($0.94) to 20.5 pounds ($1.05), while it moved the price of a pack of “Cleopatra” brand cigarettes (Box) from 20 pounds ($1.02) to 22 pounds, and also moved the prices of cigarettes. “Cleopatra” brand (Super) increased from 21 pounds ($1.07) to 23 pounds ($1.17), while the price of a pack of “Mondial” brand cigarettes of all three types increased from 21 pounds to 23 pounds.

Prices after the third increase

Six months ago, the Eastern Company moved the prices of 10 types of popular cigarettes due to the two value added taxes and the Universal Health Insurance Law No. 2 of 2018, and after these movements since the beginning of 2022, the prices of Boston cigarettes are recorded at 22 pounds ($1.12) and Belmont at 22 pounds and Cleopatra ( King Super) at 20.5 pounds ($1.05), Cleopatra (Soft Queen) 21 pounds ($1.07), Cleopatra (Box) 22 pounds, and Cleopatra (Super) 23 pounds ($1.17), while the price of a pack of Mundial cigarettes is 23 pounds, while the price of cigarettes Mondial (Switch, Menthol, Blueberry) 24 pounds ($1.23).

The Egyptian government is anticipating a revenue from taxes on tobacco, smoke and cigarettes during the current fiscal year 2022-2023 of more than 87 billion pounds ($4.5 billion), an increase of seven billion pounds ($360 million) over the outcome of the last fiscal year 2021-2022, when the outcome amounted to about 80 One billion Egyptian pounds ($4.1 billion), an increase of 12 billion Egyptian pounds (615 million dollars) over the outcome of the fiscal year 2020-2021, when the proceeds from taxes on tobacco, dandelions, and molasses amounted to about 75 billion pounds ($3.84 billion).

The Eastern Company produces popular local cigarettes of all kinds, while leaving the space for the four foreign companies to produce foreign cigarettes such as “Marlboro, Merit and LM”. In the last fiscal year 2020-2021, the company sold more than 72 billion cigarettes, an increase of 17% over the year The previous financial statement, according to the company’s financial statements.

And it confirmed the complete realization of its sales plan after the quantity of production sold reached about 70 billion cigarettes, an increase of 13% over the last fiscal year, which is equivalent to about 230 million cigarettes per day, and its revenues amounted to about 18 billion pounds (923 million dollars), in addition to four billion Dollars of the proceeds of exporting cigarettes, molasses and tobacco outside the country.

Earlier this month, the American company “Philip Morris” announced the participation of the “Eastern Tobacco Company” in the foreign smoke and tobacco industry in Egypt, after the second monopolized that industry for more than a century, after the first announced in early September the start of the production of some The items were transferred through the United Tobacco Company, after the latter obtained a license to manufacture this year, according to an official statement on August 31.

The state-owned “Al-Sharqiya Company” contributes 50 percent to the company holding the new license by 24 percent, according to the “Sharqiya Company” data, and “Al-Sharqiya” still owns the right to manufacture the popular “Cleopatra” cigarettes, according to the bid conditions booklet, which stipulates that The Eastern Company has the right to own that percentage in the company that obtained the cigarette production license.

The article is in Arabic

Tags: dollar disturbs mood smokers Egypt

PREV Dybala wasted your insignificant Handanovic, Inzaghi .. Mourinho snatched the gold!
NEXT The midterm elections .. Why are they a concern for Democrats?