TOBACCO PROFITS.

Western Star, 9 April 1920, Page 2

TOBACCO PROFITS.

Smokers generally will be interested in the finances of the British, American Tobacco Company, which-is closely seriated with the British Tobacco Company (Australiai), Ltd., which controls the Australasian markets. The British American Tobacco, Company’s report for the year ended September 30, 1910, states that the following interim 1 , dividends had been paid on the ordinary shares—namely, 6 per cent, on March 31, 1919, 6 per cent, on June 30, 1919, and C per cent, on September 30, 1919. The interim dividends thus totalled 24 per cent., and a final dividend of 6 per cent., free of British income tax,, has been declared and paid, making the total distribution for the year 30 per cent., which is an extraordinarily big dividend, to pay, and the smokers seem content to pay it. The net profits for the year, after deducting all charges and management expenses-, and providing for income tax. and estimated excess profits duty for the year, are £3,776,508, and, after deducting preference dividend for the year of 5 per cent-., £225,000, there was left £3,551,508. A sum of £3,005,580 was brought forward, making £0,557,088. The four interim dividends on ordinary shares absorbed £1,644,352, and the final dividend of 6 per cent. £512,422, which left £4,400,312 to be carired forward. The actual net profits of the year ly'ero sufficient to proride for all reserves, writings down, and the dividcul ol £1,394,732. . It must bo remembered also that the net profits do not include the un/ divided profits olf associated companies. The British Tobacco Company (Australasia), Ltd., has just declared a quarterly dividend of - 3 per cent.