Daily MF Dnes brought interview with CEO of Philip Morris CR (PMCR), which took place during closed press conference last Thursday. As we already informed on Friday CEO commented on past developments and prospects for year 2006. Total cigarette consumption in Czech Republic increased by 15% over the past two years and reached about 24bn pieces; nonetheless, PMCR’s market share has diminished by approx. 10 percentage points. Low-price segment plays more and more important role with its 30% market share. PMCR expects foreign demand to rise going forward, however domestic demand may start to decline depending on price development. There might be a threat mainly from Poland, which has 2-year longer transition period for excise tax hikes. PMCR doesn’t plans to introduce new brands to the market and should concentrate on existing brands, however not only on price but also on quality of more expensive brands. PMCR sees further decline in revenues mainly in 2006 as last year excise tax increase was compensated by its lower margins.