BAT’s annual profits fail to light up

LONDON – Cigarette giant British American Tobacco announced yesterday a 29-per cent slump in pre-tax profits to £2,588 billion (around N$27,69 billion) in 2005, but the data was skewed by big deals from the previous year.

BAT, maker of Kent and Dunhill cigarettes, said in an official results statement that revenue sank 13 per cent to £9,325 billion last year, compared with 2004. Operating profit, meanwhile, plunged 36 per cent to £2,420 billion.The heavy falls were “mainly due to the impact in 2004 of a significant £1,389-billion gain on the Reynolds American transaction”, BAT added.Data from 2004 took account of the merger of its US business Brown and Williamson with rival RJ Reynolds in July that year, creating Reynolds America, in which BAT owns a 42-per cent stake.It also included the sale of Italian distribution arm Etinera in December 2004.Like-for-like group operating profit, excluding the effects of the two major transactions, rose nine per cent to £2,607 billion in 2005.- Nampa-AFPOperating profit, meanwhile, plunged 36 per cent to £2,420 billion.The heavy falls were “mainly due to the impact in 2004 of a significant £1,389-billion gain on the Reynolds American transaction”, BAT added.Data from 2004 took account of the merger of its US business Brown and Williamson with rival RJ Reynolds in July that year, creating Reynolds America, in which BAT owns a 42-per cent stake.It also included the sale of Italian distribution arm Etinera in December 2004.Like-for-like group operating profit, excluding the effects of the two major transactions, rose nine per cent to £2,607 billion in 2005.- Nampa-AFP