Philip Morris International Inc. Announces New Business Structure in Egypt to Enhance Profitability in Region
NEW YORK--(BUSINESS WIRE)--Jan. 29, 2014--
Philip Morris International Inc. (“PMI”) (NYSE / Euronext Paris: PM)
announced today that as part of its initiative to enhance profitability
and growth in North African and Middle Eastern markets, it has decided
to restructure its business in Egypt.
The new business model entails a new contract manufacturing agreement
with our long-standing, strategic business partner, Eastern Company
S.A.E., the creation of a new PMI affiliate in Egypt and a new
distribution agreement with Trans Business for Trading and Distribution
To accomplish this restructuring and to ensure a smooth transition to
the new model, PMI will record, in the fourth quarter of 2013, a charge
to its 2013 full-year reported diluted earnings per share of
approximately $0.10 to reflect the discontinuation of existing
“Today’s announcement marks the next stage in the highly successful
evolution of our business in Egypt, which could not have been achieved
without the significant contribution of our long-established partner, Al
Mansour International Distribution Company S.A.E.,” said Miroslaw
Zielinski, PMI’s President, Eastern Europe, Middle East & Africa Region
and PMI Duty Free.
“PMI’s new operational model will ensure business continuity in this
dynamic market, where PMI achieved currency-neutral, double-digit
earnings growth and strong share gains in 2013. Furthermore, going
forward, the new model will assure the continued expansion of our market
presence and an increase in our share of the profit pool,” continued Mr.
PMI’s Business in Egypt
PMI is the leading international tobacco company in Egypt, with an
estimated market share of 22.9% in 2013, up 4.7 points versus 2012,
driven by premium Marlboro, up by 1.1 points to an estimated
7.3%, and mid-price L&M, up by 3.3 points to an estimated
13.1%. The total market in Egypt in 2013 was approximately 80 billion
units, up by an estimated 2.8% versus 2012. In 2013, the retail pack
price of Marlboro, which enjoys close to a 75% share of the
premium segment, was EGP 15.50 (approximately $2.25). PMI’s products are
contract manufactured in Egypt by Eastern Company S.A.E.
Philip Morris International Inc.
Philip Morris International Inc. (PMI) is the leading international
tobacco company, with seven of the world’s top 15 international brands,
including Marlboro, the number one cigarette brand worldwide.
PMI’s products are sold in more than 180 markets. In 2012, the company
held an estimated 16.3% share of the total international cigarette
market outside of the U.S., or 28.8% excluding the People’s Republic of
China and the U.S. For more information, see www.pmi.com.
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