Newport lifts Reynolds’ 2Q volume

R.J Reynolds Tobacco’s cigarette volume during the three months to the end of June, at 20.5 billion, was increased by 25.7 percent on that of the three months to the end of June 2015, 16.3 billion.

The increase was down to the Newport brand, which Reynolds acquired on June 12 last year and which therefore made only a partial contribution during the second quarter of 2015. But it was affected too by the sell-off of Reynolds’ Winston, KOOL and Salem brands. During the three months to the end of June, Newport sales reached 8.8 billion while during the three months to the end of June 2015 Newport sales under Reynolds were 1.4 billion.

Comparing the same periods, Camel volume was down by 2.8 percent from 5.4 billion to 5.3 billion and Pall Mall volume was down by 5.4 percent from 5.2 billion to 4.9 billion.

Overall, the volume of Reynolds’ drive brands – Newport, Camel and Pall Mall – was increased by 57.3 percent from 12.0 billion to 18.9 billion.

The volume of other-brand cigarettes was down by 63.8 percent from 4.3 billion to 1.5 billion.

Reynolds’ share of the domestic retail cigarette market during the three months to the end of June, at 32.2 percent, was up by 0.1 of a percentage point on that of the three months to the end of June 2015.

Newport’s share was increased by 0.5 of a percentage point to 13.9 percent, Camel’s share was unchanged at 8.3 percent, Pall Mall’s share was down by 0.2 of a percentage point to 7.7 percent, and other-brands’ share was down by 0.2 of a percentage point to 2.4 percent.

Santa Fe’s cigarette (comprising the Natural American Spirit brand) volume during the three months to the end of June, at 1.4 billion, was up by 10.8 percent on that of the three months to the end of June 2015.

At the same time, Natural American Spirit’s share of the retail market increased by 0.4 of a percentage point to 2.2 percent.

American Snuff’s moist snuff volume during the three months to the end of June, at 127.8 million cans, was down by 0.5 percent on that of the three months to the end of June 2015.

Grizzly volume was down by 0.4 percent to 116.8 million cans, while other-brands volume was down by 2.4 percent to 11.0 million cans.

At the same time, American’s share of the moist-snuff retail market fell by 0.8 of a percentage point to 33.2 percent. Grizzly’s share was down by 0.7 of a percentage point to 30.6 percent, while the share of the company’s other moist snuff brands fell by 0.1 of a percentage point to 2.6 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 $3,195 million, were increased by 33.0 per cent from that of the three months to the end of June 2015.

Reported operating income was down by 67.6 percent to $1,415 million but adjusted operating income was increased by 45.0 percent to $1,466 million.

Reported net income was down by 58.7 percent to $796 million but adjusted net income was up by 43.0 percent to $828 million.

Reported net income per diluted share was down by 66.9 percent to $0.56 but adjusted net income per diluted share was up by 13.7 percent to $0.51.

“Strong market share gains across our operating companies’ premium cigarette portfolio, in combination with higher pricing in both cigarettes and moist snuff, drove excellent operating performance in the second quarter,” said Susan M. Cameron, president and CEO of RAI. “The achievements by our operating companies through the first half of 2016 have significantly strengthened Reynolds American, and I’m pleased to announce further steps supporting our commitment to returning value to RAI’s shareholders.”