Bulgartabac reports a profit of BGN 7.5 mln for the first half of the year

Bulgartabac Holding has registered a profit of BGN 7.5 mln for the first half of 2010, said company's officials. This is an increase of 165.93% compared to the same period of last year and the main reason for this is the rise in revenues due to market expansion, stated the experts. The total sales of tobacco products for the first six months of the year amounted to 6,736 bn cigarettes (or BGN 123.389 mln). Out of these, an overall of 1,053 bn cigarettes were sold on the domestic market and some 5,683 bn were exported.
 
"In some regions of the country, contraband offering of cigarettes has reached the alarming 50-60% of all sales," stated the consolidated report of the holding for the second quarter of 2010. According to studies of local and external independent organizations, an increase in the number of smuggled cigarettes has been registered since the beginning of the year. In the period January-April, the volumes of smuggled cigarettes grew dramatically. The sale of cigarettes without an excise band or with a foreign band is a widespread practice in all the regions of the country. In June alone, the distribution of smuggled cigarettes slightly decreased.
 
The financial crisis still affects the market of tobacco products. The 2009 trend of decline in the consumption continues. Sales of both Bulgarian and part of the imported brands have decreased. Demand and supply of cigarettes in pieces have increased, as well as of cut tobacco for hand rolling cigarettes, sometimes of dubious quality. The most popular brand of the holding – "Victory" - has a market share of 18%.