NEWS

15.01.2004
Results of operation of Yaroslavl cigarette factory "Balkan Star" in 2003

Year 2003 became one of the most difficult years for the tobacco industry of Russia. Overproduction crisis and sharp increase of the tobacco goods excise lead for the first time in the last decade to the overall reduction of the production volume in the tobacco industry. Under the circumstances "Balkan Star" focused its main activities on the production volume optimization and stabilization of its market share. Its basic investments came to the marketing systems development. The elaborated measures made it possible for "Balkan Star" to hold its positions of the largest cigarette manufacturer with 100% Russian stock.

In 2003 production output of "Balkan Star" was 31.4 billion pieces. At the same time, owing to high quality filter cigarettes production increase, the company achieved US$ 200 million of the total turnover per year. The "Balkan Star" controlled share in the Russian market settled down on the 2002 mark and exceeded 8% of the market. Tax revenues from "Balkan Star" at the end of 2003 topped US$ 70 million, which is 40% higher then in the same period of the previous year.

In 2003 "Balkan Star" continued dynamic development of the projects in the framework of diversification of business program. Currently the company is rapidly constructing the first in Yaroslavl international rate hotel, which is expected to be put in operation in October this year. This positive dynamic in the last year was supported by two building and construction materials plants belonging to "Balkan Star". Due to the technical improvement these enterprises - Yaroslavl plant of lime-sand brick production and "Yartehnostroy" plant - could start the production of the new grades of the modern construction materials and increase significantly their production volumes. The new production plants operation resulted in doubling the numbers of work places; it caused 70% increase of the wage fund. Tax allocation of these enterprises increased more than twice on average. At the same time the management paid off accrued debts in the different budgets.

In the course of its business development "Balkan Star" keeps extending its sponsorship and charitable programs aimed to support children's homes, music and artistic groups, sports teams, schools, medical and social establishments. In 2003 the company allotted more than 3 million rubles.

During the current year "Balkan Star" is directing its efforts to consolidating its position in the Russian cigarette market by means of further improvement of marketing and new cigarette brands development. Besides, the company concentrates its attention on further expansion of the investment projects and has scheduled a new project - construction of the new AAC (Aerated Autoclaved Concrete) plant in Yaroslavl region.

We trust the successful development of our company contributes significantly to the economical situation of the country and our region.