Uzbek tobacco manufacturer increases net profit by 70 percent
Uzbekistan, Tashkent, August 3 / Trend D. Azizov /
JSC JV UzBAT SA is the exclusive manufacturer of tobacco products in Uzbekistan. It increased its net profit by 1,7 times - uo to 71,3 billion sums in 2009 compared to 41,7 billion soums in 2008, the annual report of the joint venture said.
Sales volumes on the domestic market in 2009 increased by 26.4 percent compared to 2008. About 12.34 billion cigarettes were sold last year compared to 9.76 billion a year earlier.
This growth is caused by high sales figures of leading international brands: Kent, Pall Mall and Viceroy, the report said.
Samarkand cigarette factory produced 12.747 billion cigarettes in 2009 or 22 percent more than in 2008.
As of late December 2009 the actual volume of purchases of tobacco amounted to 6,100 tons.
Export sales amounted to 650 million cigarettes, and 4.797 tons of tobacco compared to 638 million cigarettes, and 4.853 tons of tobacco in 2008.
Revenue from product sales increased from 204.934 billion soums in 2008 up to 314.992 billion soums in 2009, the gross profit from product sales increased by 107.611 billion soums up to 169.784 billion soums.
In 1994, British American Tobacco purchased 51 percent shares of the corporation "Uztabak" and created a joint venture UzBAT SA. The authorized fund of the company is 5.668 billion soums. Uzbekistan Investment Ltd, a subsidiary of British company, owns 97.35 percent of shares.
The total cost of the investment program is more than $ 300 million. About $ 100 million is the cost of a cigarette factory, built in Samarkand in 1997, producing 12 billion cigarettes annually.
JV UzBAT SA sells 30 brands of cigarettes on the Uzbek market, including such well-known international brands as Lucky Strike, Kent, Dunhill and Pall Mall, as well as national brands Xon, Karvon, Astra.