JTI, 26.5% surge in H1

Japan Tobacco International (JTI), one of the main players on the domestic cigarette market, in the first half of the year saw turnover increase by 26.5% to 550 million RON (165m euros), against the corresponding period of last year. At the same time, the volumes sold by JTI domestically saw an increase of 3% against last year, to 658.3 million units, marking a rally from 2006, when the entire market was hit by higher cigarette prices. Starting July 1, the total excise for cigarettes stands at 41.50 euros/1,000 pieces. For next year, in line with the Fiscal Code, excises will be raised to 50 euros/1,000 cigarettes, only to reach 74 euros in 2010. In the first half, JTI paid excises worth 447m RON, with around one third of this sum as the vice tax. The vice tax paid by JTI in H1 stood at 133 million RON, close to the level the company paid for the entire of 2006, of 148.7m RON. Last year, JTI generated turnover worth 950.6m RON (270m euros). JTI Romania owns a cigarette plant in Bucharest, with production destined both to the domestic market and to foreign markets. The company exports filters to Andorra and Serbia, as well as cigarettes to Hungary and the Baltic states and plans to expand exports to other neighbouring countries.