Philip Morris CR to pay out Kc1,220 dividend for 2024

Kutna Hora, Central Bohemia, May 30 (CTK) - Philip Morris CR, the country's leading manufacturer and retailer of tobacco products, will pay out a gross dividend of Kc1,220 per share for last year, the same amount as for 2023, the annual general meeting decided today.

The company's sales excluding excise duty and VAT rose by 5 percent year-on-year to Kc21.6bn last year. Net profit remained at Kc3.3bn, while operating profit rose by 3.4 percent to Kc4bn.

The increase the company achieved is modest, but given the conditions it faced, the numbers are very good, said CEO Fabio Costa at the AGM.

Total sales of cigarettes and smokeless 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 smokeless alternatives are increasing slightly. Philip Morris CR continued to expand its smokeless product range last year, in which the tobacco is heated unlike conventional cigarettes. It launched new nicotine pouches in the Czech Republic and Slovakia.

Costa recalled that the company is planning to expand the Kutna Hora plant to include the production of nicotine pouches. The Kc1bn project envisages the creation of hundreds of new jobs, with commercial production to start next year. The company is expanding production in response to the growing demand for nicotine sachets in the Czech Republic and other countries.

The total combined market for cigarettes and heated tobacco products in the Czech Republic declined 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 markets with an estimated 39.6 percent market share in the Czech Republic and 52.6 percent in Slovakia, Costa said.

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

In Slovakia, the company's total sales fell by 2.9 percent to 3.7 billion units. Sales of smoking tobacco products there fell by 200 million units year-on-year to 2.5 billion units, while sales of smokeless 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).

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