Philip Morris International reports 8.9% year-over-year decline in Q1 Russian cigarette sales to 18.6 billion cigarettes; overall tobacco sales in nation fall 6.7% to 66.9 billion cigarettes, mostly due to negative impact of price hike
April 18, 2014
(Interfax Information Services)
– Philip Morris International (PMI) shipped 18.6 billion cigarettes on the Russian market in the first quarter of 2014, an 8.9% decrease from the same period of last year, PMI said in a statement.
Tobacco sales fell by 6.7% overall in Russia to 66.9 billion cigarettes mostly due to the negative impact of a price hike because of an increase in excise duties in June of last year and in January 2014. This was also connected with heightened illegal trade, PMI said.
Despite this decline, the company boosted its share on the Russian market by 0.4 percentage points to 26.7% in February compared with Q4, according to data from Nielsen.
The market share of Parliament, L&M and Bond Street grew by 0.2, 0.4 and 0.4 percentage points, respectively, to 3.5%, 3% and 7%. Marlboro's share declined by 0.2 points to 1.6%, while Chesterfield's fell 0.3 points to 2.9%.
PMI shipments to countries in Eastern Europe, the Middle East and Africa declined 7.2% in Q1 to 62 billion cigarettes due to sales decline in Russia, Kazakhstan, Serbia and Ukraine. The company's revenue in the macro-region fell 1.7% to $2 billion. Excluding exchange rate differences, revenue advanced 4.5% due to the positive effect of increased cigarette prices in Russia, among other things.
Shipments to EU countries were down 2.9% at 41.7 billion cigarettes, to Asia - 2.5% at 70.8 billion, and to Latin America and Canada - 4.8% at 21.4 billion cigarettes.
Overall shipments declined 4.4% in Q1 to 195.9 billion cigarettes. Revenue fell 1.6% to $6.9 billion.
Philip Morris International is one of the world's largest manufacturers of tobacco products. The company produces cigarettes at over 50 factories and sells products in 160 countries.
(Our editorial staff can be reached at firstname.lastname@example.org)
(c) 2014 Interfax Information Services