Cairo – Mubasher: Eastern Company achieved a 17% growth to EGP 11.46 billion in net profit before tax during fiscal year (FY) 2023/2024, which ended on 30 June 2024, compared to EGP 9.76 billion in FY22/23.
Net revenues increased by 15% to EGP 20.44 billion in FY23/24 from EGP 17.82 billion in the previous FY, according to the income statements.
Meanwhile, Eastern Company’s net profits after tax soared by 20% to EGP 9.18 billion in FY23/24 compared to EGP 7.65 billion in FY22/23, which ended on 30 June 2023.
The tobacco manufacturer highlighted that in FY23/24 “The company's authorised capital was increased to EGP 15 billion, and the issued and paid-up capital was raised from EGP 2.23 billion to EGP 3 billion. This increase was funded from the legal reserve balance through the distribution of bonus shares at a rate of 0.345 free shares per share, bringing the total number of company shares to 3 billion.”
Furthermore, the company’s total assets surged annually to EGP 32.86 billion as of 30 June 2024 compared with EGP 26.30 billion in the same period a year earlier.
CEO Comment on Annual Results
Giving remarks on the positive financial results delivered by Eastern Company during FY23/24, CEO Hany Aman said: “I am delighted with the positive indicators and results achieved. These outcomes reflect the commitment and responsibility of the company's management and highlight the efforts made despite the significant challenges we faced at both the macroeconomic and microeconomic levels over the past year.”
Aman noted: “In continuation of Eastern Company's success journey, I am also pleased with the strategic partnerships we have established, which we consider an added value to the company. These partnerships have had a significant impact on evolving the company’s business framework and transitioning to a new level of vision. This transformation is supported by global expertise in modern management, ensuring integration with all market stakeholders to achieve the best results and overcome various challenges.”
The CEO concluded: “Finally, we are confident that the company is on the right path, marking the beginning of a new era that aligns with various modern developments. Eastern Company is a great industrial institution with over 100 years, and we are certain that another century of success lies ahead, I am honoured to be part of this journey.”
Fourth Quarter Results
During FY23/24’s fourth quarter (Q4), from April to June 2024, Eastern Company generated pretax net profits worth EGP 4.89 billion. The result was 65% higher than EGP 2.97 billion in Q4-22/23.
The net revenues jumped by 103% to EGP 6.73 billion during April-June 2024 from EGP 3.32 billion in the same quarter a year ago.
It is worth noting that Eastern Company’s board approved a hike in prices for some cigarette products starting 14 April 2024.
As for the net profit after tax during Q4-23/24, the company posted EGP 4 billion which was 69% higher than EGP 2.36 billion in Q4-22/23.
On a quarterly basis, the pretax net profits in Q4-23/24 were 68% higher than EGP 2.88 billion in Q3-23/24 while the net sales grew 16% from EGP 5.79 billion and the net profit after tax was 76% higher than EGP 2.27 billion.
Cash Dividends
The board members of the listed tobacco company recommended a cash dividend payout of EGP 2.70 per share for the fiscal year which ended on 30 June 2024, subject to the ordinary general meeting’s (OGM) resolution.
During the first nine months (9M) of FY-23/24, Eastern Company registered net profits of EGP 5.17 billion while its net sales reached EGP 13.71 billion.
