Tutun CTC produced 3bn cigarettes in half a year

The production of Tutun CTC continues to rise, while the tobacco company develops steadily. In the first half of 2009, it made 1.85 billion cigarettes, in the corresponding period of 2010 – 2.5 billion, while in the same period of 2011 - 3 billion. The figures were presented by Minister of Agriculture and Food Industry Vasile Bumacov in a news conference on Monday, Info-Prim Neo reports. Tutun CTC is under the Ministry’s control as the state owns 52% of the shares in the company. According to Vasile Bumacov, the Ministry named a new executive team at the company and stated to restructure it in 2010. This process is aimed at optimizing production costs, making the management more efficient and at liquidating the unprofitable divisions. Sales in January-June this year totaled 270 million lei, as opposed to 195 million lei in the corresponding period last year. The gross profit is 58 million lei, while the net profit – 29.3 million lei. The minister said that Tutun CTC repaid all the loans taken out from banks and is now a profitable company. The profit rate is currently 10.8%, as against - 5% in 2009 and – 0.55% in 2010. As to the Tutuc CTC Board’s decision to give premiums of thousands of lei to members of the executive team (by about 190,000 lei a year per person), Vasile Bumacov said the Agriculture Ministry cannot intervene in the operational activities of the companies and in the decisions of the Board, even if the state is the main shareholder. The minister also said that the situation of Tutun CTC and other companies in which the state owns a major holding must be significantly improved before being privatized so as to attract good investors.