• March 28, 2024

RAI’s Newport-boosted 2Q volume up by 4.4 percent

R.J Reynolds Tobacco’s domestic cigarette volume during the three months to the end of June, at 16.3 billion, was increased by 4.4 percent on that of the three months to the end of June 2014, 15.6 billion.

Camel volume was increased by 3.5 percent to 5.4 billion, Pall Mall volume was down by 2.2 percent to 5.2 billion, and other-brand cigarette volume was down by 16.3 percent to 4.3 billion.

The three months’ figures included a 1.4 billion contribution from Newport, which Reynolds acquired when it completed its acquisition of Lorillard on June 12, but excludes the divested brands Winston, KOOL and Salem.

Reynolds’ share of the domestic retail cigarette market during the three months to the end of June, at 31.8 percent, was down by 0.1 of a percentage point from that during the three months to the end of June 2014.

Newport’s share was increased by 0.4 of a percentage point to 13.2 percent, Camel’s share was increased by 0.1 of a percentage point to 8.2 percent, Pall Mall’s share was down by 0.3 of a percentage point to 7.8 percent, and other-brands’ share was down by 0.3 of a percentage point to 2.6 percent.

Santa Fe’s cigarette (comprising the Natural American Spirit brand) volume during the three months to the end of June, at 1.3 billion, was up by 25.1 percent on that of the three months to the end of June 2014.

At the same time, Natural American Spirit’s share of the retail market increased by 0.3 of a percentage point to 1.8 percent.

American Snuff’s moist snuff volume during the three months to the end of June, at 128.5 million cans, was increased by 6.0 percent on that of the three months to the end of June 2013.

Grizzly volume was increased by 7.1 percent to 117.2 million cans, while other-brands volume was down by 4.1 percent to 11.3 million cans.

At the same time, American’s share of the moist-snuff retail market rose by 1.1 percentage points to 33.8 percent. Grizzly’s share was up by 1.3 percentage points to 31.1 percent, while the share of the company’s other moist snuff brands fell by 0.2 of a percentage point to 2.8 percent.

Reynolds American Inc yesterday announced its second quarter and half year 2015 results.

Net sales for the three months to the end of June, at $2,403 million, were increased by 11.1 per cent from that of the three months to the end of June 2013.

Reported operating income was up by 422.0 percent to $4,364 million and adjusted operating income was increased by 25.1 percent to $1,011 million.

Reported net income was up by 291.9 percent to $1,928 million and adjusted net income was up by 22.2 percent to $579 million.

Reported net income per diluted share was up by 267.4 percent to $3.38 and adjusted net income per diluted share was up by 14.6 percent to $1.02.

“Reynolds American delivered excellent results in the second quarter, in addition to successfully completing the Lorillard acquisition and related divestiture,” said Susan M. Cameron, president and CEO of RAI.

“The strength of our operating companies and their growth brands continued to benefit RAI’s earnings and operating margin through the first half, and the integration of the powerful Newport menthol brand into R.J. Reynolds Tobacco Company’s cigarette portfolio is going very smoothly.”

Meanwhile, Reynolds’ domestic cigarette volume during the six months to the end of June, at 30.2 billion, was 1.1 percent up on that of the six months to the end of June 2014.

Santa Fe’s cigarette (Natural American Spirit) volume during the six months to the end of June, at 2.3 billion, was up by 24.3 percent on that of the six months to the end of June 2014.

And American’s moist snuff volume during the six month to the end of June, at 246.0 million cans, was up by 3.3 percent on that of the six months to the end of June 2014.