Bulgartabac Holding’s Earnings Grow Eightfold in H1 2012
The largest tobacco company Bulgartabac Holding has reported its consolidated earnings that grew 8.5 times in the first half of 2012 compared to the same period of 2011.
In such a way, in the first half of 2012, the cigarette maker, which was sold to a subsidiary of the Russian bank VTB for EUR 100.1 M by the Bulgarian government in September 2011, reported a total income of BGN 27 M.
The Bulgartabac Holding will keep BGN 23.5 M from the income, but the rest will be directed to minority shareholders in the group’s 3 subsidiaries – Sofia BT, Blagoevgrad BT and Pleven BT.
Bulgartabac registered an income of BGN 13.3 M in the second quarter of 2012 exceeding its result of BGN 10.2 M from the first quarter
In the first half of 2012, total sales of the tobacco company increased by 46 percent year-on-year to BGN 244 M; the growth in the second quarter was 53 percent year-on-year, to BGN 114 M.
A total of 82 percent of tobacco company’s produce goes to exports, the BT Holding declared in its media statement; along withcigarettes, BT Holding as well deals with exports of tobacco leaves and oriental tobacco, which comprise nearly 2 percent of its sales.
Bulgartabac Holding has kept its major market share in Bulgaria, with 33.8 percent of the Bulgarian market of cigarettes.
BT Invest, which is the property of Russian bank VTB, obtained a tender at the end of August 2011 to purchase a 79.8 percent stake in Bulgartabac for EUR 100.1 M.
According to the contract, it is prohibited to resale the holding in the next 10 years. This condition can be dropped if it is a change in the ownership of BT Invest. This possibility has been approved by the Bulgarian Privatization Agency.
BT Invest, that is registered in Austria and owned by the Russia’s second-biggest bank VTB, was the only buyer for the Bulgarian tobacco monopoly after British American Tobacco and CB Family Office Service refused the sale.
The Bulgartabac Holding’s less profitable plants, which are situated in the cities of Plovdiv and Stara Zagora, were purchased for BGN 31 M and BGN 18 M respectively in 2009.
Now Bulgartabac is the owner of the two larger and more consolidated plants in Sofia and Blagoevgrad, a processing plant in Yasen near Pleven, and a number of commercial brands.
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