Bulgartabac profit grew

Published on March 14th, 2011 12:46
Bulgartabac Holding

Bulgartabac Holding, leading cigarette company in Bulgaria and largest state-owned tobacconist set to be privatized later this year, reported net profits of $14.3 million in 2010.

The cigarette-maker’s financial results were revealed in the profit report published last week. According to the company’s managed the growing profits confirm the permanent tendency of positive financial performance.

The report indicated that the company’s 2010 profit went up by 16.5 times in comparison to the 2009 profit. The consolidated earnings from cigarette sales rose 22 percent during the full year.

In 2010 80 percent of the company’s products were exported, in comparison to 53 percent in the previous year and 30 percent in 2008.

Besides exports growth, the Bulgartabac Holding Group holds 37 percents of the Bulgarian local tobacco market, including such famous brand like Eva cigarettes. In addition 3.5 percent of Bulgartabac’s earnings for the full year 2010 were generated from the sales of tobacco leaves.

The company runs two cigarette manufacturing plants – in Sofia and Blagoevgrad – and a processing plant in Pleven. Great financial performance of the company led to the shares of Bulgartabac Holding increasing 54 percent on the Sofia Stock Exchange in the fourth quarter.

Bulgartabac’s high financial performance has been revealed on the threshold of the privatization of the company, as announced by the government. Nearly ten investors have admitted interest in privatizing Bulgartabac Holding, said Bulgarian Minister of Economy Traicho Traikov.

According to several sources, among the companies interested in acquiring Bulgartabac Holding there are companies from South Korea, Russia, Greece and other countries.

Bulgartabac, managed by the state during several decades was offered for privatization after several controversial decisions had been made by the state management that put the company on the brink of bankruptcy.

In January, Simeon Djankov, Bulgaria’s Finance Minister confirmed earlier declarations that the government is willing to sell the country’s largest tobacconist, among several strategic objects, including largest military plant and electricity distributors.

The Ministry of Economy announced last month that the Citibank, named consultant for the sale last February, has made certain inquiries with nearly 100 potential investors from several countries regarding the privatization of Bulgartabac in order to ensure that all investors do not know about the privatization of the company.

The Ministry spokesman stated there are several serious investors interested in acquiring Bulgartabac holding since it is a great asset even during recession. The government it willing to sell the tobacco company by this summer.

The government has already sold two minor cigarette manufacturing plants in the cities of Plovdiv and Stara Zagora in 2009. The company manufactures more than 50 cigarette brands, among which are EVA Super slims and other brands.

By Kevin Lawson, Staff Writer. Copyright © 2011 TobaccoPub.com. All rights reserved.

Related tags: big tobacco | cigarettes sales | eva cigarettes | tobacco company

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