The Eastern Company announced robust financial results for the second quarter (Q2) of fiscal year (FY) 2023/24, with revenues surging 54% quarter-on-quarter to EGP 4.8bn.
This came in the unaudited financial statements approved by the Eastern Company’s Board of Directors for the financial period ending on December 31, 2023.
The total profit amounted to EGP 1.8bn, compared to EGP 975m, with a growth rate of 83%, and net profit after tax amounted to EGP 1.8bn, compared to EGP 1.1bn, with a growth rate of 58% during the comparison period.
The Eastern Company’s strong performance was primarily fueled by its local cigarette business, which accounted for 94% of total revenues. Local cigarette sales volumes increased by 48% Q-o-Q, while sales values jumped by 62% Q-o-Q. This growth was attributed to various factors, including market share gains and effective pricing strategies.
Regarding the performance of the Eastern Company during the first half of FY 2023/24, the company achieved EGP 7.9bn in revenues, a total profit of EGP 2.7bn, and a net profit after tax of EGP 2.9bn, while the net profit margin increased from 35% to 37%.
The Board of Directors approved increasing the authorized capital to EGP 15bn and issued capital to EGP 3bn.
This move aims to strengthen the company’s financial position and support future growth initiatives. Additionally, the board approved concluding credit facility agreements to secure raw materials and production requirements.
This was achieved by utilizing part of the reserve balance, releasing EGP 770m to distribute new shares to existing shareholders at a rate of 0.3453 shares for each share held.
Eastern Company remains optimistic about its prospects. The Board authorized necessary studies to explore further capital increases within the authorized limit and approved credit facility agreements to support raw material imports and production requirements.
The Board of Directors also approved concluding credit facility agreements to open documentary credits for Eastern Company suppliers to import raw materials and tobacco and non-tobacco production requirements. It also approved the obtainment of credit facilities in the form of letters of guarantee for the benefit of local banks issuing documentary credits.
The company also appointed Hussein Saad Zaghloul to the Board, filling the vacancy left by the passing of Mohamed Gamal Moharam.
