The Greek Tobacco Industry Karelia is awaiting the European Union’s plan for the new tobacco products directive, which, according to several analysts, will be strict, and may impose, within a few years, the abolition of packaging and types of tobacco products in 2026.
As the company emphasized, despite the significant uncertainty that this brings with regard to investments in production equipment, the management of the Karelia group has decided to continue its investment program in order to respond to the current increase in sales volume and the need for greater flexibility in the production process, since it estimates that the amortization of these investments will be relatively short-term.
Regarding the group’s performance during the current financial year, the management of the listed company noted that sales volumes are moving particularly positively during the first months of the second half of 2025 compared to the same period last year. This positive trend is expected to continue for the rest of the year. In particular, in the Greek market, cigarette volumes appear to have increased by approximately 5%, while tobacco volumes are at last year’s levels.
The Company’s sales to Duty Free Shops are also expected to move upwards and at the same levels as the domestic market. In the international markets where the Karelia Tobacco Industry operates, it estimates that the very satisfactory course of the first half of the year will continue, especially after the increase in production capacity and flexibility stemming from the new production complexes that have already started operating or are to be installed within the second half of the year.
As the company emphasized in its financial report, the total sales volume in international markets in 2025 will increase by 10% in cigarettes and 3% in tobacco. In terms of cost levels, it noted the visible de-escalation of tobacco and filter raw material purchase prices, and expects a gradual increase in gross profit margin, at least until the end of the first half of 2026.
