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Cigarette volume down but moist snuff volume up at Reynolds American

| July 25, 2013

R.J Reynolds Tobacco’s domestic cigarette volume during the three months to the end of June, at 17.0 billion, was 6.0 percent down on that of the three months to the end of June 2012.

Pall Mall volume was up by 0.5 percent to 5.6 billion, Camel volume was down by 0.9 percent to 5.5 billion, and other-brand cigarette volume was down by 15.3 percent to 5.9 billion.

Reynolds’ share of the domestic retail cigarette market during the three months to the end of June, at 26.0 percent, was down by 0.3 of a percentage point from that during the three months to the end of June 2012.

Pall Mall’s share was up by 0.5 of a percentage point to 8.9 percent, Camel’s share was up by 0.4 of a percentage point to 8.7 percent, while the share of the company’s other-brand cigarettes was down by 1.2 percentage points to 8.4 percent.

Santa Fe’s cigarette (comprising the Natural American Spirit brand) volume during the three months to the end of June, at 0.9 billion, was up by 14.6 percent on that of the three months to the end of June 2012.

At the same time, Natural American Spirit’s share of the retail market increased by 0.3 of a percentage point to 1.4 percent.

American Snuff’s moist snuff volume during the three months to the end of June, at 121.8 million cans, was up by 9.4 percent on that of the three months to the end of June 2012.

Grizzly volume was up by 10.6 percent to 109.6 million cans, while other-brand volume was down by 0.6 percent to 12.2 million cans.

At the same time, American’s share of the moist-snuff retail market rose by 0.7 of a percentage point to 33.1 percent. Grizzly’s share was up by 1.0 percentage point to 30.0 percent, while the share of the company’s other moist snuff brands fell by 0.3 of a percentage point to 3.1 percent.

Reynolds American Inc. yesterday announced its second-quarter and half-year 2013 results.

Net sales for the three months to the end of June, at $2,179 million, were up by 0.1 percent on that of the three months to the end of June 2012.

Reported operating income was up by 8.7 percent to $798 million and adjusted operating income was increased by 7.5 percent to $800 million.

Reported net income was up by 4.1 percent to $461 million, and adjusted net income was up by 2.9 percent to $462 million.

Reported net income per diluted share was up by 7.7 percent to $0.84, and adjusted net income per diluted share was up by 6.3 percent to $0.84.

In announcing the results, RAI’s president and CEO, Daniel M. Delen, said second-quarter growth in RAI’s earnings and margins reflected strong performance across all of the company’s reportable business segments. “Profits increased at RJR Tobacco, American Snuff and Santa Fe, and their powerful key brands delivered solid market-share gains,” he said.

Later, he said that as part of RAI’s efforts to transform the tobacco industry, its companies remained focused on building new platforms for growth to meet the changing preferences of adult tobacco consumers. “At R.J. Reynolds Vapor Company, the expansion of the company’s highly differentiated Vuse e-cigarettes is now underway in Colorado, and we will continue to expedite Vuse’s expansion within this exciting new category,” Delen said.

Meanwhile, Reynolds’ domestic cigarette volume during the six months to the end of June, at 31.9 billion, was 7.3 percent down on that of the six months to the end of June 2012.

Pall Mall volume was down by 0.6 percent to 10.4 billion, Camel volume was down by 3.1 percent to 10.3 billion, and other-brand cigarette volume was down by 15.8 percent to 11.2 billion.

Santa Fe’s cigarette (Natural American Spirit) volume during the six months to the end of June, at 1.7 billion, was up by 14.6 percent on that of the six months to the end of June 2012.

And American’s moist snuff volume during the six month to the end of June, at 227.3 million cans, was up by 5.4 percent on that of the six months to the end of June 2012.

Grizzly volume was up by 6.5 percent to 204.5 million cans, while other-brand volume was down by 3.6 percent to 22.9 million.

Category: Breaking News

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