Reynolds American Inc overall sales rose 2.8 percent to $ 1.93 billion, with all operating divisions reporting increased revenue. However, the revenue gain was offset by the cost of products jumping 34 percent year over year to $930 million. Other expenses were up 37.2 percent to $413 million.
Camel edged back ahead of Pall Mall for third place in cigarette market share at 10 percent to 9.5 percent, respectively. Both cigarette brands gained market share year over year even as their combined shipment volumes barely increased. The brands continue to trail Philip Morris USA's Marlboro and Lorillard Inc.'s Newport brands.
Overall shipments were down 3.8 percent year over year to 14.3 billion cigarette sticks. Reynolds' overall share of the cigarette market rose 0.1 percentage points to 26.7 percent compared with a year ago, including Camel and Pall Mall who have a combined 19.4 percent market share.
Market share for Grizzly was up 1.1 percentage points to an industry-leading 31.5 percent. American Snuff Co.'s overall moist-snuff market share rose 0.8 percentage points to 34.6 percent. Natural American Spirit had a 10.7 percent gain in shipments to 800 million cigarette sticks. It has a 1.5 percent market share.
Reynolds said a portion of the market share gains likely came from a decision by the group that measures market share to put more emphasis on sales from convenience stores and gas stations, where the majority of tobacco products are bought.
Bonnie Herzog, an analyst with Wells Fargo Securities, said she was not concerned about Reynolds missing earnings projections because of the market share growth in its four growth brands." "Reynolds' growth brands appear to be on solid footing," Herzog said. "Santa Fe and Grizzly continue to generate impressive results.
"We remain very optimistic that Cameron will be able to lead Reynolds into its next generation of growth, possibly global." Pope said the jockeying in promotional prices by the top three manufacturers could be in Reynolds' favor at the top end."Customers seeking a specific flavor or cachet are not fickle, flaky or ultra-price sensitive," Pope said.
Reynolds reaffirmed its fiscal 2014 adjusted earnings guidance range of $3.30 to $3.45 a share. Reynolds did not comment about a potential deal with Lorillard Inc., which has been speculated for two months. Reynolds did list among its investment risks the July 30 ending of the 10-year moratorium on British American Tobacco buying more Reynolds stock. BAT owns 42 percent of Reynolds as part of Reynolds' $4.4 billion purchase of Brown & Williamson Tobacco Corp. — then a BAT U.S. subsidiary — that was completed July 30,2004.
Camel edged back ahead of Pall Mall for third place in cigarette market share at 10 percent to 9.5 percent, respectively. Both cigarette brands gained market share year over year even as their combined shipment volumes barely increased. The brands continue to trail Philip Morris USA's Marlboro and Lorillard Inc.'s Newport brands.
Overall shipments were down 3.8 percent year over year to 14.3 billion cigarette sticks. Reynolds' overall share of the cigarette market rose 0.1 percentage points to 26.7 percent compared with a year ago, including Camel and Pall Mall who have a combined 19.4 percent market share.
Market share for Grizzly was up 1.1 percentage points to an industry-leading 31.5 percent. American Snuff Co.'s overall moist-snuff market share rose 0.8 percentage points to 34.6 percent. Natural American Spirit had a 10.7 percent gain in shipments to 800 million cigarette sticks. It has a 1.5 percent market share.
Reynolds said a portion of the market share gains likely came from a decision by the group that measures market share to put more emphasis on sales from convenience stores and gas stations, where the majority of tobacco products are bought.
Bonnie Herzog, an analyst with Wells Fargo Securities, said she was not concerned about Reynolds missing earnings projections because of the market share growth in its four growth brands." "Reynolds' growth brands appear to be on solid footing," Herzog said. "Santa Fe and Grizzly continue to generate impressive results.
"We remain very optimistic that Cameron will be able to lead Reynolds into its next generation of growth, possibly global." Pope said the jockeying in promotional prices by the top three manufacturers could be in Reynolds' favor at the top end."Customers seeking a specific flavor or cachet are not fickle, flaky or ultra-price sensitive," Pope said.
Reynolds reaffirmed its fiscal 2014 adjusted earnings guidance range of $3.30 to $3.45 a share. Reynolds did not comment about a potential deal with Lorillard Inc., which has been speculated for two months. Reynolds did list among its investment risks the July 30 ending of the 10-year moratorium on British American Tobacco buying more Reynolds stock. BAT owns 42 percent of Reynolds as part of Reynolds' $4.4 billion purchase of Brown & Williamson Tobacco Corp. — then a BAT U.S. subsidiary — that was completed July 30,2004.
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