Phillip Morris Restructures Agenda in Egypt and Contracts with Eastern Tobacco To increase its profitability in MENA

Chaperoned by the Egyptian Minister of Investment and the Minister of State of UAE

NY, Cairo, 2nd of February 2014: Phillip Morris International (PMI), with a stock symbol PM in NYSE Euronext Paris, has s Middle East and North Africa.

In celebration, H.E. Minister of Investment of Egypt, Dr. Ossama Saleh, H.E. Minister of State of UAE, Dr. Sultan Al Jaber, Eastern Tobacco Company Chairman of the Board of Directors, Mr. Nabil Abdel Aziz, the Egyptian Holding Company for Chemicals Chairman of the Board of Directors, Eng. Yahya Almashal, Mr. Roman Yazbeck, VP Africa and Levant division, Phillip Morris International, Mr. Ali Takesh, Phillip Morris General Manager in Egypt, and Mrs. Salma Mameesh Corporate Affairs Director in Egypt, were all gathered in the event.

A new Phillip Morris affiliate company is established in Egypt to seal a new manufacturing contract with Phillip Morris’ all time strategic ally, Eastern Tobacco Company; in addition to a new distribution agreement with Trans Business for Trading and Distribution, as per the restructuring plan. With respect to the reform plan of the company, Phillip Morris will record a charge of approximately 10 cents per share in the last quarter of 2013.

Miroslav Zilinsky, President of Eastern Europe, Middle East and Africa region and PMI Duty Free explains, “the new business structure of operations in Egypt and its success can not be possible without the support of our long time partner, Mansour International Distribution Company.” He adds that the new structure will simplify operations in Egypt and strengthen its presence in the dynamic Middle East market; the market where Phillip Morris has increased its investments, successfully maintaining a 25.5% of the market share in one year, in spite of the fluctuation of the exchange rate up to 10%. 

Phillip Morris International in Egypt Figures

Phillip Morris is the leading international tobacco company in Egypt, with an estimated market share 22.9% in 2013, up 4.7 points in comparison to 2012; driven by its premium brand Marlboro up 1.1 point (7.3%) in comparison to last year; and mid-price L&M up 3.3 points (13.1% of total market share) in comparison to last year.

In 2013, total market equaled to 80 billion units; up 2.8% in comparison to the year before.

Marlboro’s market share of premium brands equals to 75% and reached the price of EGP 15.50 ($2.25).

Eastern Tobacco Company manufactures Phillip Morris’ products on a contractual basis in Egypt.