Sitab First-Quarter Net Income Rises 146% Despite Volume Decline
TLDR
- Ivory Coast's tobacco manufacturer Société Ivoirienne des Tabacs SA (BRVM: STBC) posted net income of 9.41 billion CFA francs ($16 million) in Q1 2025
- Revenue increased 35% to 61.42 billion CFA francs ($104.3 million) despite a 7% decline in sales volume to 1.71 million cigarette units
- The price increases followed regulatory changes, including a minimum price requirement introduced in November 2024
Ivory Coast's tobacco manufacturer Société Ivoirienne des Tabacs SA (BRVM: STBC) posted net income of 9.41 billion CFA francs ($16 million) in Q1 2025, up 146% from 3.82 billion CFA francs in Q1 2024.
Revenue increased 35% to 61.42 billion CFA francs ($104.3 million) despite a 7% decline in sales volume to 1.71 million cigarette units. The company attributed volume drops to price increases on FINE DUO and FINE KS cigarettes implemented in January 2025. Operating profit surged 134% to 12.35 billion CFA francs ($21 million) from 5.27 billion CFA francs in the same period last year.
The price increases followed regulatory changes, including a minimum price requirement introduced in November 2024 and significant excise tax hikes on tobacco products. The company expects to maintain strong performance through 2025 while preserving current sales trends.
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Key Takeaways
The Q1 performance demonstrates how tobacco companies can maintain profitability despite volume challenges through strategic pricing. The company successfully navigated regulatory headwinds by optimizing operational costs while implementing necessary price increases. Imperial Brands-owned SITAB operates in West Africa where tobacco consumption patterns differ from developed markets. While sales volumes declined 7%, the company's ability to increase prices by approximately 45% (based on revenue growth versus volume decline) shows strong pricing power in the Ivorian market. Industry analysts note that tobacco companies in emerging markets typically face growing regulatory pressure as governments adopt stricter controls. SITAB's adaptation to Ivory Coast's new minimum pricing and excise tax increases suggests preparedness for potential future regulatory changes while continuing to deliver shareholder value.
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