In 2022, one of the largest employers in Sátoraljaújhely, Continental Tobacco Corp., which owns the tobacco factory in Sátoraljaújhely, continued to grow. The year proved to be a successful one for the company in financial, sales and strategic terms: while Continental was able to increase its sales in several product groups, its sales revenue amounted to HUF 63.7 billion (EUR 171,7 million) and its profit after tax to HUF 8.2 billion (EUR 22,1 million) – the former representing an increase of almost 13 percent and the latter of about 30 percent compared to 2021. In addition, the company successfully completed its investment of nearly HUF 10 billion (EUR 27 million), including the delivery of a new tobacco preparation hall, as a highlight of the year.
Financial results, sales trends
Despite the external economic challenges, Continental Tobacco Corp. closed the 2022 financial year on a positive note. According to the company’s annual report, sales revenue increased by nearly 13 percent from HUF 56 billion (EUR 150 million) in 2021 to HUF 63.7 billion (EUR 171,7 million), and profit after tax reached HUF 8.2 billion (EUR 22,1 million), an increase of about 30 percent compared to HUF 6.4 billion (EUR 17,3 million) in 2021.
The company’s sales of both cigarettes, natural wrapper cigars and expanded tobacco increased significantly compared to 2021, contributing significantly to the increase. Although sales of smoking tobacco and, with it, pods declined, following the contraction of international markets, the company still has a strong position in these product groups.
Milestones for 2022
The year 2022 was marked by the successful completion of Continental’s largest ever investment: the new tobacco preparation hall, which was required to meet the tobacco factory’s increased demand for tobacco cut, was handed over as part of a nearly HUF 10 billion (EUR 27 million) development. The plant, which was built and integrated into the production chain without stopping production and in continuous operation, is a key milestone in Continental’s life in terms of production capacity, robotisation and competitiveness.
Another important milestone was the expansion of the second tobacco expander factory, which will be operating at full capacity from November onwards, with a 4-shift schedule to meet the increased international demand for expanded tobacco.
Employee support and the development of their wage and benefit system were also among the focal points of the year, with the company providing a total of HUF 300,000 (EUR 800) in overhead cost compensation to all its employees during the heating season from November to April.
Looking ahead to 2023
While the results achieved have further strengthened the company’s current market position, they also provide a solid basis for growth plans, which include further strengthening sales indicators and infrastructure development.
Csaba Füzi, CEO of Continental Tobacco Corp, said that after an outstanding year in 2022 in many respects, they are looking ahead to 2023 with caution due to the still difficult economic environment: the focus is primarily on maintaining current market positions and taking advantage of growth opportunities, which may be realistic for several product groups. The development of the infrastructure serving the tobacco factory is also seen as an important aspect, including the development of the industrial site purchased earlier this year to serve as a warehouse for finished goods, in order to alleviate the shortage of warehouse capacity resulting from the expansion of preparation capacity.