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Cote d’Ivoire-based Tobacco company Societe Ivoirienne des Tabacs (Sitab) has returned a $152.6-million value gain to shareholders, as its stock price has surged by more than tenfold in 2021.
The surge triggering the multimillion-dollar gain can be linked to resilient financial performance in 2020, which led to dividends being paid to shareholders for the first time in four years.
Societe Ivoirienne des Tabacs (Sitab), or The Ivorian Tobacco Company, is a Cote d’Ivoire-based company listed on the Bourse Regionale des Valeurs Mobilieres, a regional stock exchange for countries like Benin, Burkina Faso, Guinea-Bissau, Cote d’Ivoire, Mali, Niger, Senegal and Togo.
Ivorian executive Eric Thiam Sabate leads Sitab, a subsidiary of the Imperial Tobacco Group, a global consumer-focused organization and the fourth-largest international tobacco group.
The tobacco company, known for brands such as Fine, Gauloises Blondes and Excellence, opened its first trade at CFA530 ($0.91) per share this year on the regional bourse. Since then, its stock price has increased tenfold to CFA5,480 ($9.41) per share as of the time of the drafting of this report.
The surge has accrued total gains of 934 percent for shareholders since the year began.
As a result of the surge, Sitab’s market capitalization has risen from CFA9.5 billion ($16.3 million) to CFA98.4 billion ($168.9 million). This translates to a CFA88.9-billion ($152.6 million) value gain for the Cote d’Ivoire-based tobacco company and its shareholders since the start of the year.
What you should know about Sitab, or The Ivorian Tobacco Company
The recent gain in the company’s share price can be linked to strong financial performance in 2020, coupled with expectations of improved financial results in 2021, as economic activities strengthened following disruptions from the COVID-19 pandemic.
The company reported strong growth in its revenue, which increased from CFA94.8 billion ($163.4 million) in 2020 to CFA116.4 billion ($200 million) in 2021. This strong performance spurred the 213-percent surge in its operating profit from CFA1.5 billion ($3.4 million) to CFA4.6 billion ($8.6 million).
In line with the surge in its earnings, the board paid its shareholders a dividend of CFA7.83 billion ($13.78 million). This marks its first dividend distribution to investors in four years.
