3 Aug 2018 19:05

Revenue growth at tobacco cos slows in 2017, dividends increase SPARK

MOSCOW. Aug 3 (Interfax) -The three main tobacco product suppliers on the Russian market paid higher dividends in 2017, according to the SPARK-Interfax analytical system, which includes all earnings distributions to shareholders.

Japan Tobacco International was the leader on the Russian market. Its local subsidiary, JTI Rossiya LLC, paid 17.05 billion rubles in dividends in 2017 compared with 9.6 billion rubles in 2016 and 17.8 billion rubles in 2012.

Philip Morris Sales and Marketing, a unit of Philip Morris International, paid 3.5 billion rubles last year compared with nil in 2016.

Finally, British American Tobacco's JSC International Tobacco Marketing Services paid 12.8 billion rubles in dividends compared with 12.36 billion rubles in 2016.

All three companies saw slowing revenue growth in 2017, according to SPARK.

JTI Rossiya boosted revenue 4.9% to 289.15 billion rubles. Revenue grew 12.5% in 2016.

Gross profit fell 8.9% to 68.3 billion rubles, profit from sales dropped 24.4% to 24.09 billion rubles and net profit was down 23.4% to 19.1 billion rubles.

Philip Morris Sales and Marketing increased revenue 2.7% to 276.2 billion rubles in 2017, compared with revenue growth of 14.8% in 2016. Gross profit was up 2.8% to42.4 billion rubles, profit from sales - up 67.3% to 6.01 billion rubles and net profit - up 67.5% to 3.7 billion rubles.

Revenue for International Tobacco Marketing Services grew 10.4% to 201.01 billion rubles, compared with growth of 30.8% in 2016. Gross profit fell 10.7% to 41 billion rubles, profit from sales was down 18.7% to 20.01 billion rubles and net profit fell 20.6% to 15.4 billion rubles.

JTI estimates that the Russian tobacco market contracted 7.4% in 2017, adding that its shipments in Russia were down 5%. PMI said sales in Russia dropped 9.1% amid a 7.2% contraction in the overall market, to 260 billion cigarettes.