Reynolds’ cigarette sales down sharply

R.J Reynolds Tobacco’s domestic cigarette volume during the three months to the end of June, at 15.6 billion, was 8.3 percent down on that of the three months to the end of June 2013, 17 billion.
Pall Mall volume was down by 6 percent to 5.3 billion, Camel volume was down by 4.4 percent to 5.2 billion, and other-brand cigarette volume was down by 14 percent to 5.1 billion.
Reynolds’ share of the domestic retail cigarette market during the three months to the end of June, at 26.5 percent, was down by 0.1 of a percentage point from that during the three months to the end of June 2013.
Pall Mall’s share was up by 0.1 of a percentage point to 9.3 percent, Camel’s share was up by 0.4 of a percentage point to 10.2 percent, while the share of the company’s other-brand cigarettes was down by 0.6 of a percentage point to 7 percent.
Santa Fe’s cigarette (comprising the Natural American Spirit brand) volume during the three months to the end of June, at 1 billion, was up by 7.9 percent on that of the three months to the end of June 2013.
At the same time, Natural American Spirit’s share of the retail market increased by 0.2 of a percentage point to 1.6 percent.
American Snuff’s moist snuff volume during the three months to the end of June, at 121.2 million cans, was down by 0.5 percent on that of the three months to the end of June 2013.
Grizzly volume was down by 0.1 percent to 109.4 million cans, while other-brand volume was down by 3.6 percent to 11.8 million cans.
At the same time, American’s share of the moist-snuff retail market rose by 0.6 of a percentage point to 34.4 percent. Grizzly’s share was up by 0.7 of a percentage point to 31.4 percent, while the share of the company’s other moist snuff brands fell by 0.2 of a percentage point to 3 percent.
Reynolds American Inc. on Tuesday announced its second-quarter and half-year 2014 results.
Net sales for the three months to the end of June, at $2,162 million, were down by 0.8 percent from that of the three months to the end of June 2013.
Reported operating income was up by 4.8 percent to $836 million and adjusted operating income was increased by 1 percent to $808 million.
Reported net income was up by 6.7 percent to $492 million and adjusted net income was up by 2.6 percent to $474 million.
Reported net income per diluted share was up by 9.5 percent to $0.92 and adjusted net income per diluted share was up by 6 percent to $0.89.
“Reynolds American turned in an excellent second quarter, with higher earnings and margin reflecting continued strong performance by our reportable business segments,” said Susan M. Cameron, president and CEO of RAI.
“The environment remains very competitive, and I’m particularly pleased to report that all of our companies’ key brands gained market share.”
Meanwhile, Reynolds’ domestic cigarette volume during the six months to the end of June, at 29.9 billion, was 6.2 percent down on that of the six months to the end of June 2013.
Pall Mall volume was down by 3.3 percent to 10.1 billion, Camel volume was down by 1.2 percent to 10.2 billion, and other-brand cigarette volume was down by 13.5 percent to 9.7 billion.
Santa Fe’s cigarette (Natural American Spirit) volume during the six months to the end of June, at 1.8 billion, was up by 9.2 percent on that of the six months to the end of June 2013.
And American’s moist snuff volume during the six month to the end of June, at 238.1 million cans, was up by 4.7 percent on that of the six months to the end of June 2013.
Grizzly volume was up by 5.6 percent to 215.8 million cans, while other-brand volume was down by 2.7 percent to 22.3 million.