The meeting, which was attended by the company’s shareholders, and investors, was seen as a perfect opportunity for attendees to evaluate the firm’s financial performance during the financial year of 2006.
The meeting was chaired by Mr. Tawfeeq Fakhouri the Board Chairman of ITC, and was attended by 39 shareholders who together own 78.8% of the company’s capital worth JD 20 million. The meeting was also attended by Mr. Mashhour Al Zabin, a representative of the Corporations’ Monitoring Authority, and during its proceedings the financial statements and company reports for the year ending December 31st 2006 were approved.
According to company records published for the business year ending on December 31st 2006, the company’s sales went up by 40%. This percentage was calculated in comparison to corresponding figures from the financial year of 2005. ITC’s sales, including the sales of its partner companies, amounted to JD 51.131 million during that time period whereas in 2005 this figure was calculated to be JD 36.436 million. ITC’s sales figures alone, excluding those of its partner companies went up by 7% during the financial year of 2006.
The firm’s net profits after tax deduction were calculated to be JD 360,624. It is important to note here that that the firm’s exports in both Jordan and the region were very high for the same time periods. The ratio of the firm’s sales volumes to its export volumes rose from 16% in 2005 to 17% in 2006. The rise has been continuous over the last 15 years and has amounted to a total of JD 170 million in 2006.
Commenting on these positive results, Mr. Samer Fakhouri, General Manager of ITC, said,
“I am proud of all what ITC had achieved this year. At present ITC takes up a high percentage of the local market share, and we have created a well studied and long term strategy to increase our sales further in the years to come. We plan to expand our product range, and we want to strengthen our ties with our partner firms. We see ourselves as firm supporters of the advancement of the Jordanian economy. We also plan to strengthen our market presence abroad. We are sure we can achieve such goals with the help of our well experienced and dedicated team.”
ITC currently occupies 50% of the local market share, an achievement that is attributed to its well studied market sales strategies and the wide variety of the locally produced tobacco products it introduces to the market as well as its partnership with Philip Morris.
ITC’s annual report for the year 2006 also shows that the firm has paid off all its tax expenses to the National Treasury. These expenses amounted to US$ 550 million. In the year 2006 alone, tax expenses incurred by ITC amounted to US$ 54 million. The figures issued by ITC also show that the company has spent a sum of JD 79,173 million on social development initiatives. Over the last 15 years, the firm has allocated a total of half a million Jordanian Dinars to this cause.
Last year, ITC lunched its Bidaya scholarship Fund. The Fund was launched in cooperation with the Ministry of Higher Education, and targets Jordanian youth that are with solid academic accomplishment, but without the means to allow them entry into Jordanian public universities. Each year this fund grants 12 distinguished students the opportunity to enter universities across the Kingdom at the start of each academic year.
Furthermore, during the financial year ending on December 31st 2006, ITC increased its investments. The firm invested JD 10 Million in its UAE based partner company, Alfakher Corporation, a firm that specializes in the production of flavored tobacco, and moasel. Expanding its investment portfolio, the firm also invested a total of US$ 2,95 million in the Islamic Bank of Jordan.
ITC established partnerships with several Companies including a Company specializing in the Distribution of Tobacco Products. ITC also recently established its partner company the Iqbal Corporation for Priming and Packaging with a capital investment worth JD 5 million, and Al Alfakher Corporation with a capital investment worth JD 7720 million.
The General Assembly meeting ended on a positive note with Mr. Fakhouri thanking both Shareholders and investors for their belief in ITC and for contributing to the growth of its operations. “Without your firm belief in ITC we wouldn’t be where we are today, so I want to thank you all for putting your trust in ITC, and for helping us achieve our goals. We on our part will fulfill our promise to you and we will continue to provide you with quality tobacco products that we will continue to develop and evolve so as to mach market demands” he added.
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