Tabak, the dominant Czech cigarette producer, 80%-owned by Philip Morris with an 80% market share, announced a planned price increases on Friday. The wholesale price of its cigarettes will go up by 3% on average as of July 24. Tabak quoted an unfavorable CZK/USDS exchange rate development as the main reason for the move. Tabak is not SPAD traded, is not very liquid, but is popular among investors owing to its consistent high profitability and regular high dividend (almost 100% payout). Our Tabak recommendation is accumulate.
(Ondřej Daťka)