Rothmans profit up 45%

Press, 16 August 1989, Page 40

Rothmans profit up 45%

NZPA-AAP Sydney Rothmans Holdings said it posted a consolidated after tax profit of sAustlO4.lO million ($NZ135.19M) for the year ended June 30, up 45% from the previous year.

The group also earned an extraordinary profit of sAust2B.92M ($NZ37.54M) on which no tax is payable, on the sale of its investment in Allen Life Savers during the year. The directors said the profit was recorded despite a decline in the company’s tobacco division sales volume and market share.

The directors will recommend payment of a final dividend of A27c per share, bringing the dividend for the full year to As2c, a 100% increase from last year. J .. Rothmans said it has increased its share of the more profitable premium price tobacco segment, which together

with improved operating efficiencies, provided a worthwhile profit increase. Tobacco sales volumes in New Zealand and Papua New Guinea declined, while growing in Fiji and the Philippines. In its wholesale distribution division, the sale of tobacco products substantially increased but the sales of confectionery products declined, mainly because of increased competition. The company said there was a strong growth in profits in its printing and packaging division. Sales of luxury products, including Dunhill and Cartier merchandise, set new records this year and the group’s investment income also grew. The directors are confident Rothmans’ sales performance and operating efficiency will further improve, despite intense competition in all of the markets in which it operates.

It expects to achieve higher levels of profitability.