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Tag: Egypt

  • PMI Raises Prices in Egypt After VAT Change

    Days after Egypt amended its tobacco VAT law, Philip Morris Egypt released a new price list for its cigarettes and heated tobacco products. Yesterday (July 1), Egypt’s largest tobacco producer, Eastern Company, of which PMI owns a 14.7% indirect stake, made a similar announcement.

    PM Egypt’s managing director Ali Nafzat Kerman reaffirmed the company’s commitment to meeting adult smokers’ needs while advancing toward a smoke-free future. Philip Morris urged retailers to adhere to the new pricing. The new tax laws cap the lowest-tier cigarettes at EGP 48 ($0.96) and the mid-tier at EGP 69 ($1.38), with VAT taxes increasing 12% in each of the next three years.

    The new official prices for PMI in Egypt are EGP 69 for HEETS, EGP 76 ($1.52) for L&M and TEREA, EGP 79 ($1.58) for Marlboro Crafted, EGP 80 ($1.60) for TEREA Capsules, EGP 97 ($1.94) for Marlboro, and EGP 105 ($2.10) for Merit.

  • Eastern Company Caps Cig Prices After Egypt Ups Taxes

    Eastern Company Caps Cig Prices After Egypt Ups Taxes

    Eastern Company announced that beginning today (July 1), prices for the Egyptian cigarette maker will be capped at EGP 45 ($0.90) per pack following recent tax bracket changes. Company CEO Hany Aman said the company had reached the upper limit of the previous tax bracket, and maintaining those prices was causing losses as rising raw material and transportation costs significantly increased production expenses.

    The new tax laws cap the lowest-tier cigarettes at EGP 48 ($0.96) and the mid-tier at EGP 69 ($1.38). Previously, the lowest tier retailed for EGP 38 ($0.76) per pack, with 60-65% of the price collected being tax. This past weekend, the government amended the Value Added Tax (VAT) on cigarettes, which will increase the minimum and maximum retail prices by 12% annually for three years starting in November.

    Sales were paused on Sunday and Monday to adjust pricing, with the new rates taking effect on Tuesday. Aman said the company is still assessing the full impact of the updated tax regulations and may provide further updates soon.

  • Egypt Increases Cigarette Price Thresholds

    Egypt Increases Cigarette Price Thresholds

    The Egyptian House of Representatives approved a government-backed amendment to the Value Added Tax Law, aimed at bolstering state revenues and advancing tax and social equity. A key provision of the amendment involves a structured increase of 12% annually to the minimum and maximum retail price thresholds for cigarettes, beginning November 5, 2025, and running through 2028.

    New cigarette price thresholds for 2025 for local cigarettes priced below EGP 38.88 ($0.78) will increase to EGP 48 ($0.96); cigarettes priced between EGP 38.88 and EGP 56.44 ($1.13) will increase to EGP 48 to EGP 69 ($1.38); and imported brands priced up to EGP 56.44 will increase to EGP 69.

  • PMI Launches IQOS ILUMA i in Egypt

    PMI Launches IQOS ILUMA i in Egypt

    Philip Morris Misr launched the IQOS ILUMA i in Egypt, the “latest and most advanced smoke-free device in its portfolio,” according to the company. The device features the Smartcore Induction System, which heats tobacco without combustion, delivering a cleaner, residue-free experience. It includes smart features like a touchscreen, pause mode, FlexPuff, and improved battery technology.

    “We leverage science, world-leading brands, and commercial capabilities to provide better alternatives to our consumers,” said Ali Nevzat Karaman, managing director of Philip Morris Egypt and Levant. “Following the introduction of IQOS ILUMA in Egypt in 2023, we are now taking the IQOS experience to new heights. IQOS ILUMA i is our most innovative device to date—our flagship product in the portfolio of scientifically substantiated, heat-not-burn smoke-free systems.”

    The IQOS ILUMA i is compatible with existing TEREA sticks, avoiding the need for format changes. This launch supports Philip Morris International’s vision of a smoke-free future, backed by over $14 billion in R&D and a goal to eliminate cigarettes. Smoke-free products now make up 42% of PMI’s net revenues, with 38.6 million adult users worldwide as of December 2024.

  • PMI Considers Expansion in Egypt

    PMI Considers Expansion in Egypt

    Philip Morris International (PMI) has enjoyed success in Egypt with its IQOS heated tobacco product and is looking to expand to other smoke-free products in the market, said Tommaso Di Giovanni, vice president for International Communication and Engagement at PMI. With an estimated 15 million adult smokers in the country, IQOS has already made significant progress in providing a reduced-risk alternative to traditional cigarettes.

     “We were—and we are—selling a product that causes diseases and is addictive: cigarettes,” Di Giovanni said. “Anyone who sells a product that causes disease and is addictive would like to do better,” stressing PMI’s dual responsibility to society and to the company itself.

    He further emphasized that improving the health of adult smokers is not only a moral obligation but also a sound business strategy. “It’s a win-win for our company and for public health,” he explained, adding that addressing societal concerns can help PMI stay ahead of the competition while positively impacting global health.

    “For us, the first goal of sustainability is to address the public health issues posed by cigarettes. The ultimate goal is to offer a portfolio of products that meets the diverse needs of the market while supporting sustainability goals.”

  • Eastern Sells Factory to PMI

    Eastern Sells Factory to PMI

    Image: Stephen Finn

    Eastern Co. will sell the land, buildings and currently rented equipment of its Factory No. 9 to United Tobacco Co. (UTC), a subsidiary of Philip Morris International, for EGP1.58 billion ($32.66 million), reports Ahram Online.

    According to an Eastern Co. statement to the Egyptian Exchange, the sales price was the average of three valuations offered by valuation companies.

    As part of the deal, UTC will waive its right to recollect the remaining annual rent value of the factory that was paid in full according to the rent contract that ends on April 26, 2026.

    Egypt is in the process of privatizing many state-owned companies. The government hopes to earn $5 billion from this program.

    In November 2023, Egypt’s Ministry of Public Enterprise sold a 30 percent stake in Eastern Co. to the United Arab Emirates’ Global Investment Holding Co. for EGP19.34 billion.

    In May 2024, PMI acquired an indirect 14.7 percent stake in Eastern Co.

  • PMI Acquires Minority Stake in Eastern Co.

    PMI Acquires Minority Stake in Eastern Co.

    Photo: artmim

    Philip Morris International has acquired 14.7 percent of Eastern Co., reports Egypt Today.

    PMI and Eastern reportedly seek to explore potential strategic areas for collaboration in technology, manufacturing and innovation.

    “We look forward to exploring potential areas of cooperation with Eastern, including opportunities to provide adult smokers in Egypt with better options than cigarettes,” said Fred de Wilde, PMI president for South and Southeast Asia, the Commonwealth of Independent States and the Middle East and Africa, in a statement.

    In November, Global Investment Holdings, an investment firm based in the United Arab Emirates, paid EGP16.4 billion ($531.6 million) for 669 million shares in Eastern Co.

    Eastern Co.’s primary shareholders include the state-owned Holding Company for Chemical Industries (20.9 percent), the Allan Gray Equity Fund (7.2 percent) and the shareholders union of the Eastern Co. (6 percent), with the remaining 36 percent of shares trading freely on the stock exchange.

    Egypt has been selling stakes in 35 state-owned companies through offering shares to strategic investors.

    Eastern Co. is Egypt’s largest cigarette manufacturer, with a portfolio that also includes cigars and pipe tobacco, among other products.

  • Eastern CEO Defends Price Hike

    Eastern CEO Defends Price Hike

    Photo: Taco Tuinstra

    Eastern Co. increased cigarette prices by between EGP2 ($0.06) and EGP8 per pack, effective Feb. 17, 2024, reports Ahram Online.

    The company’s most affordable brand, Cleopatra, now retails for EGP30 instead of EGP27 for a pack of 20 cigarettes.

    This marks the company’s second price hike in three months. Cigarette prices have increased multiple times over the past year in Egypt amid the decreasing value of the Egyptian pound against the U.S dollar.

    Earlier this month, Philip Morris Egypt raised prices of traditional cigarette brands, including Marlboro, Merit and L&M, by between EGP9 and EGP11 per pack.

    In a television interview, Eastern Co. CEO Hani Aman insisted the price hikes were modest when compared to the significant increase in the cost of raw materials.

    “We are not a very commercial company, otherwise we would have raised our prices by large proportions like other companies, but we look at the issue from a different point of view. Cigarettes are a strategic commodity,” he was quoted as saying by The Egypt Independent.

    According to Aman, 95 percent of cigarette components are imported. The price of cigarette filters, for example, has increased by about 400 percent, he said.

    Approximately 18 million people out of Egypt’s nearly 105 million-strong population smoke cigarettes, according to official data.

  • Egypt: Philip Morris Cleans Up Nile River

    Egypt: Philip Morris Cleans Up Nile River

    Image: spiritofamerica

    Philip Morris Misr organized a campaign to clean up the Nile River as part of its social responsibility initiatives, according to Daily News Egypt. The campaign aimed to raise awareness of the importance of protecting the Nile River from pollution and enhancing environmental sustainability.

    “Our corporate strategy is based on implementing and consolidating sustainability standards,” said Ali N. Karaman, managing director of Philip Morris Egypt and Levant. “We are committed to fulfilling our social responsibility by engaging in activities that serve the needs and requirements of the local communities. Philip Morris Misr is keen to organize annual events that promote environmental awareness.”

    The campaign included various activities to collect waste from the Nile River and educate people on proper waste disposal methods, aiming to highlight negative impacts of water pollution.

    Philip Morris has strengthened its commitment to environmental sustainability recently, with plans to make plants carbon neutral by 2030. Philip Morris has made steps toward this goal, installing wind turbines, solar panels and electric vehicle charging stations at its facilities and performing awareness activities on proper disposal of cigarettes.

  • Investors Buy Stake in Eastern Co.

    Investors Buy Stake in Eastern Co.

    Image: xtock

    Investors have acquired 3.3 percent of the shares in Eastern Co. for EGP2.05 billion ($66.55 million), reports Ahram Online, citing an announcement by the Egyptian Exchange

    The acquisition was conducted in a block-trading transaction, typically carried out by a single investor or a group of investors on the market.

    In November, Global Investment Holdings of the United Arab Emirates acquired a 30 percent stake in Eastern Co. for EGP16.4 billion.

    Following the most recent transaction, the remaining shareholders in the company are the state-owned Holding Company for Chemical Industries (20.9 percent), Allan Gray Equity Fund (7.2 percent), the shareholders union of the Eastern Tobacco Co., with the remaining 6 percent of shares trading on the stock market.

    Eastern Co. is listed among 35 companies slated for partial or complete privatization by the government.