Philip Morris CR sees sales rise to Kc21.6bn in 2024

Kutna Hora, Central Bohemia, April 29 (CTK) - Philip Morris CR, Czechia's leading manufacturer and seller of tobacco products, saw its sales excluding excise duty and VAT rise by 5 percent year-on-year to Kc21.6bn last year, while its net profit remained at 2023's level of Kc3.3bn, the company said in a press release today.

Operating profit rose by 3.4 percent to Kc4bn.

Total sales of cigarettes and smoke-free products in the Czech Republic and Slovakia fell by 3.4 percent year-on-year to 9.8 billion units last year. While the traditional cigarette market continues to decline overall, sales of smoke-free alternatives are growing slightly, the company said.

The board is proposing a gross dividend of Kc1,220 per share, the same as in the previous year, according to the invitation to the general meeting.

Last year, the company continued to expand its range of smoke-free products. It launched new nicotine pouches in the Czech Republic and Slovakia, which will also be produced in Kutna Hora. In response to the lower demand for cigarettes, revenues from manufacturing services in Kutna Hora fell slightly to Kc2.7bn.

"It is evident that evolving consumer demand and the sustained decrease in sales of traditional tobacco products are persisting. It shows that adult smokers are increasingly looking for less harmful alternatives. We offer them a broad portfolio of products in a variety of categories in Czechia and Slovakia to ensure that nobody has to go back to cigarettes," said Philip Morris CR head Fabio Costa.

The total combined market for cigarettes and heat-not-burn tobacco products in the Czech Republic fell by an estimated 6 percent year-on-year to 14.6 billion units last year, while in Slovakia it fell by 2.7 percent to 6.9 billion units. Philip Morris remains the market leader in both countries with an estimated 39.6 percent market share in the Czech Republic and 52.6 percent in Slovakia.

In the Czech Republic, the company's total sales decreased by 3.7 percent to 6.1 billion units. Domestic sales of combustible tobacco products fell by 200 million units year-on-year to 3.8 billion units, while sales of smoke-free alternatives reached 2.3 billion units, remaining at the previous year's level.

In Slovakia, the company's total sales decreased by 2.9 percent to 3.7 billion units. Sales of combustible tobacco products fell by 200 million units year-on-year to 2.5 billion units, while sales of smoke-free alternatives increased by 100 million units to 1.2 billion units.

Philip Morris CR employs over 1,100 people. The company's shares are traded on the Prague Stock Exchange (BCPP).

hel/er

CS0008418869
CZ0009009718