Pall Mall Maker Reports Major Annual Revenue Since 1999
British American Tobacco (BAT), the country's biggest cigarette maker, revealed its major annual revenue since at least 1999, after revenue went up by 15 % as it reduced costs while raised excise tax hiked prices.
BAT, whose cigarette brands include Pall Mall, Lucky Strike, Kent and Dunhill, raised revenue to about $132 million from $115 million. That is the greatest yearly revenue the New Zealand unit has documented based on financial reports. BAT has paid and reported dividends of approximately $122 million in 2013, lower from $139.2 million in 2012. BAT refused to affirm whether the revenue was a record. The company's profit, which consists of excise duties, went up by 3.6 % to $1.21 billion, while other expenses, selling and advertising costs declined 17 % to $60.8 million. The cost of sales, which contains excise tax, boosted by 3.6 % to $963.5 million. BAT has spent about $46.7 million acquiring completed goods from relevant parties in the year, while its stocks reduced to $329.1 million.
New Zealand market share was bigger; even so, volume was affected by the industry shrinkage. Revenue increased highly because of price boosts and cost savings. The company claimed a 2.7 % fall in volume to 676 billion cigarettes in the year ended December 31, while worldwide sales remained sluggish at 15.3 billion pounds. BAT group revenue increased 3 % to 5.55 billion pounds in 2013. Its Asia-Pacific division generated 27 % of profit with 4.2 billion pounds in sales, offering revenue of about 1.7 billion pounds. BAT rules the local market, with its closest competitor, Imperial Tobacco, revealing sales of $432 million in the year and third ranked Phillip Morris declaring sales of $83 million.
The New Zealand authorities have been raising the tobacco excise by 10 % each year since 2012, raising the price smokers should pay within a policy aimed to make New Zealand smoke-free by 2025. The boosts are likely to pick up the average price of a package of 20 cigarettes to over $20 by 2016. "Smoking rate in New Zealand has been decreasing for lots of years, mostly as reaction to progressive excise boosts," Dawn O'Connor, BAT NZ representative told BusinessDesk. "There have been substantial excise raises passed since 2010 and we believe that present steps should be offered time to have an effect before new actions are viewed.