The nine-month period closed with double-digit growth for the Karelia Group, with net sales reaching €227.23 million and net profit exceeding €80 million.

THE VOLUMES

In particular, sales volumes were also positive in the third quarter, with significant share increases in Greece, Bulgaria and most Western European and Balkan markets. This development, combined with rising volumes in Middle Eastern markets, including Turkey, the Far East and Eastern Europe, more than offset the decline in sales to North African countries. 

GREECE

In the Greek market (including travel retail outlets), cigarette volumes increased by 8.9% year-on-year, while volumes of roll-your-own cigarette tobacco were down slightly by 0.5%.

INTERNATIONAL MARKETS

On international markets, cigarette volumes increased by 8.4% compared to the same period last year, while volumes of rolling tobacco showed a significant increase of 27.8%.

PRESSURE ON PROFITABILITY

As a result of the above, the group's net turnover (excluding VAT and VAT) increased by 7.6%.

On the other hand, the significant increase in the purchase prices of raw materials, particularly tobacco, led to a gross margin of 44.4%, compared to 46.15% in Q3 2023, and a 29.2% drop in the group's pre-tax profit.

DOLLAR EXCHANGE RATE POSITIVE

With regard to the outlook for the last quarter of the year, Karelia's management notes that the development of the dollar exchange rate following the US elections is particularly positive for the group. It is stressed, however, that the global geopolitical situation remains too volatile for even small local developments to have a disproportionate and unpredictable impact on global economic indicators.