Ex-factory prices down; positive changes may be en route
Ex-factory prices down, despite today’s increase in retail prices. On 8 Sep 2016, the Ministry of Finance raised per pack prices for Eastern Tobacco’s products to EGP10.5 up from EGP9, EGP12 from EGP9.5 and EGP12.5 from EGP10, with immediate effect. As a result, Eastern now falls into a higher tax bracket, which dilutes its blended ex-factory prices by an average of 9%. The company will now pay a fixed tax/pack of EGP3.25 up from EGP2.25; additionally, it has raised trader margins by an average of EGP0.2/pack. Eastern should however be better-off once the government approves the planned changes on tax scheme brackets and raises the fixed tax/pack, which management expects will be in a matter of weeks.
Eastern Company SAE is an Egypt-based company, which is engaged in manufacturing tobacco products. The Company's product portfolio includes cigarettes, cigars, pipe tobacco, and molasses tobacco (Moassels), as well as other related products such as cigarettes' filter rods and homogenized tobacco. Its products are divided into two segments: Export and Local products. Its Export cigarette, cigar and molasses products include such brands as Cleopatra, Taba, Golden West, President and Delta. Its Local segment offers brands, including Cleopatra, Mondial, Corona, Jose Bartolo and Legation, among others. In addition, The Company is also active in the investment, financial, commercial, industrial, agricultural, real estate and services sectors.
CI Capital is a diversified financial services group and Egypt’s leading provider of leasing, microfinance, and investment banking products and services.
Through its headquarters in Cairo and presence in New York and Dubai, CI Capital offers a wide range of financial solutions to a diversified client base that include global and regional institutions and family offices, large corporates, SMEs, and high net worth and individual investors.
CI Capital leverages its full-fledged investment banking platform to provide market leading capital raising and M&A advisory, asset management, securities brokerage, custody and research. Through its subsidiary Corplease, CI Capital offers comprehensive leasing solutions, including finance and operating leases, and sale and leaseback, serving a wide range of corporate clients and SMEs. In addition, CI Capital offers microfinance lending through Egypt’s first licensed MFI, Reefy.
The Group has over 1,700 employees, led by a team of professionals who are among the most experienced in the industry, with complementary backgrounds and skill sets and a deep understanding of local market dynamics.
CI Capital has been recognized as the “Best Investment Bank in Egypt” by EMEA Finance for four years running from 2013-2016, and by Global Finance in 2014 and 2015.
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