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PM USA’s cigarette shipments down by 4.1 per cent in year to end of December

| January 31, 2014

Philip Morris USA’s cigarette shipment volume during the 12 months to the end of December, at 129,312 million, was down by 4.1 per cent on that of the 12 months to the end of December 2012.

Marlboro shipments were down by 4.3 per cent to 111,421 million while shipments of other premium brands were down by 10.5 per cent to 7,721 million.

Discount brand shipments were increased by 3.1 per cent to 10,170 million.

PM USA’s share of the retail cigarette market during the year to the end of December, at 50.6 per cent, was up by 0.3 of a percentage point.

Marlboro’s share was up by 0.1 of a percentage point to 43.7 per cent while that of the company’s other premium brands was down by 0.1 of a percentage point to 3.1 per cent.

The company’s discount-brands share was up by 0.3 of a percentage point to 3.8 per cent.

In reporting its full-year and fourth-quarter results yesterday, Altria said that PM USA’s 2013 fourth-quarter and full-year reported domestic cigarettes shipment volumes had declined by 5.8 per cent and 4.1 per cent respectively, primarily due to the industry’s rate of decline, changes in trade inventories and other factors, partially offset by retail share gains. ‘When adjusted for trade inventories and other factors, PM USA estimates that its domestic cigarettes shipment volume was down approximately four per cent for both the fourth quarter and the full year, which is consistent with the estimated category decline,’ it said.

Middleton’s cigar shipments during the year to the end of December, at 1,198 million, were down by 3.2 per cent on those of the year to the end of December 2012.

Shipments of Black & Mild were down by 3.4 per cent to 1,177 million while shipments of other brands were increased by 16.7 per cent to 21 million.

The fall in cigar shipments during the full year was put down to changes in wholesale inventories and retail share loss.

The company’s share of the domestic retail cigar market was down by 1.4 percentage points to 29.4 per cent, with Black & White’s share down by 1.3 percentage points to 29.2 per cent and the share of its other brands down by 0.1 of a percentage point to 0.2 per cent.

Meanwhile, PM USA and USSTC’s combined smokeless product shipments (cans and packs) during the year to the end of December, at 787.5 million, were increased by 3.2 per cent on those of 2012.

Copenhagen shipments were increased by 8.6 per cent to 426.1 million while Skoal shipments were down by 1.6 per cent to 283.8 million.

Other-brand shipments were down by 5.8 per cent to 77.6 million.

PM USA and USSTC’s combined share of the retail market in smokeless tobacco increased by 0.2 of a percentage point to 55.0 per cent.

Copenhagen’s share was increased by 1.4 percentage points to 29.3 per cent while Skoal’s share was down by 1.1 percentage points to 21.4 per cent.

The share of the companies’ other brands was down by 0.5 of a percentage point to 4.3 per cent.

“Altria delivered another year of strong results for its shareholders in 2013,” said Marty Barrington, chairman and CEO.

“Altria grew its full-year adjusted diluted earnings per share by 7.7 per cent on the strength of its diverse business model and solid performance by its core businesses.

“Higher pricing and our operating companies’ brand-building activities contributed to operating companies’ income growth in all three of our reportable segments.

“Altria also took important steps toward future growth in e-vapor and other innovative products for adult tobacco consumers. MarkTen is performing well in the e-vapor category, including its expanded test market in Arizona.

“Further, we believe our agreements with Philip Morris International create the foundation for commercializing our e-vapor products abroad and opportunities to expand our portfolio of innovative products in the US.”

Category: Breaking News

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