The Clap
Eastern Company (EAST) is studying the effect of rising fuel prices and production materials on the production process, the prices of its products, and how well it can handle those increases.
The Deets
Eastern Company claims to have enough stock to satisfy the demand of the local market. In addition to that, they intend on increasing their exports in the coming period.
They have also been collaborating with authorities in clamping down on smuggled cigarettes, hoping to reduce them significantly. The smuggled cigarettes have a negative impact on Egypt’s economy as no taxes are paid on them.
The recent exit of British American Tobacco from Egypt did not significantly affect the size of their operations as they only produced 500 million cigarettes for them, a small number in the industry.
Why did BAT exit?
One of the main drivers for BAT’s exit from the market is due to decreased sales over the past few years. Their product no longer matched the specifications that the Egyptian market demanded.
Eastern Company taking repercussions ⚠️
