Category: Financial

ILO told to cut tobacco ties
Ahead of the meeting of the governing body of the International Labour Organization (ILO) on November 1, a coalition of about 200 public health organizations, including the World Health Organization, is urging the ILO to end its tobacco-industry ties, according to a story in the Nation (Thailand) relayed by the TMA
Dr. Mary Assunta, senior policy adviser for the Southeast Asia Tobacco Control Alliance (SEATCA), was quoted as saying that it was unfortunate that the ILO chose to damage its reputation by accepting money from the tobacco industry when other UN agencies had already “disengaged themselves from Big Tobacco”.
In June, the story reported, the UN had adopted a resolution encouraging its agencies to disengage with the tobacco industry, and, last month, the United Nations Global Compact (UNGC) had permanently banned tobacco industry participation.
Assunta said that the ILO had the opportunity “to catch up” with other agencies and “stand on the right side of history to prioritise and protect workers’ welfare”.
It was estimated that, since 2015, the ILO had received more than US$15 million from tobacco corporations for joint programs to combat child labor.
SEATCA said the industry used this collaboration to boost its public relations, but did little to address poverty among farmers, which was the cause of children having to work in tobacco fields.
Assunta urged the agency not to be swayed by “the paltry handouts from the tobacco industry”, and called on the governing body to cut ties with the tobacco industry as recommended in the model policy of the UN Inter-agency Task Force.
October 19, 2017
PMI to webcast results
Philip Morris International is due to host a live audio webcast at www.pmi.com/2017Q3earnings from 09.00 Eastern Time on October 19 to discuss its 2017 third-quarter results, which will be issued about 07.00 the same day.
During the webcast, which will be in listen-only mode, CFO Jacek Olczak will discuss the results and answer questions from the investment community and news media.
The audio webcast may be accessed also on iOS or Android devices by downloading PMI’s free Investor Relations Mobile Application at www.pmi.com/irapp.
An archived copy of the webcast will be available until 17.00 on November 17 at www.pmi.com/2017Q3earnings.
And the presentation slides and script will be available at the same address.
October 13, 2017
Mighty tax case closed
The Philippines’ government is expected to earn about P40 billion from a compromise deal over the tax liabilities of Mighty Corporation, according to a story in The Manila Bulletin quoting the Justice Secretary Vitaliano Aguirre II.
Aguirre said he did know the exact figure but that it was about P40 billion.
And because of the deal, the Bureau of Internal Revenue had withdrawn three tax evasion complaints it had filed with the Department of Justice against the tobacco company.
Under the Philippines’ National Internal Revenue Code and other tax laws, settling a tax case was allowed, and so the case was closed and the government richer by P40 billion, Aguirre said.
The settlement agreement over the tax liabilities was reached after Japan Tobacco Inc. (JT) acquired Mighty Corporation in September.
October 9, 2017
UK workers ‘furious’
Gallaher’s UK tobacco workers are ‘furious’ over its parent company’s plans to close its final salary defined benefit scheme to future accrual, according to a story by Natalie Tuck for the UK’s Pensions Age Magazine.
According to the union Unite, Japan Tobacco International plans to close the UK scheme at the end of December and move workers into a defined contribution scheme.
Unite has accused JTI of ‘blatant opportunism’ over the scheme’s closure, which follows the relocation of the company’s manufacturing operation in Northern Ireland to Poland with the loss of 800 jobs.
The union said that there was still a 700-strong workforce in the UK of which 177 were in the final pension scheme.
Unite has members at the company’s UK headquarters in Weybridge, Surrey, and at a distribution centre in Crewe.
Unite is due to meet UK bosses at Weybridge on October 12, when it will be asking for a boost to the pensions of the employees.
It pointed out that JTI had profits of £4 billion in 2016 and paid out £1.6 billion to shareholders.
“JTI can confirm that Gallaher Limited is, regrettably, proposing to close its defined benefit pension schemes to future accrual as of 31st December 2017,” a JTI spokesperson was quoted as saying.
“The company has entered into a period of consultation with trade union and other employee representatives about the proposals, which remain subject to such consultation.
“The company does not intend to make any further comment on this matter whilst the consultation process is ongoing.”
October 5, 2017
Call to pay quitters
Australia is being urged to invest in providing financial incentives for people to quit tobacco smoking.
Despite some of the strictest tobacco control policies in the world, recent data shows the decline in smoking in Australia has stalled, according to a story on theconversation.com.
“First-line” quitting strategies available in Australia, such as nicotine patches, are said to provide a success rate of about seven percent, or a failure rate of about 93 percent.
Such a success rate, the story said, would not allow Australia to achieve its nine percent smoking-rate target by 2020, given that the rate stands at about 14 percent now.
‘With current approaches and policies adopted in Australia having arguably lost their edge, and with more controversial approaches such as e-cigarettes caught up in political quicksand, let’s invest in the strategies that do work,’ the story said.
‘One evidence-based approach that has not received much attention in Australia is using financial incentives. Incentives programs reward quitters for not smoking by giving them a monetary voucher.
‘The quitter’s abstinence is verified using biochemical tests of either their saliva, urine or breath.’
The story said that financial incentive programs comprised one of the most effective and cost-effective strategies for getting people to quit.
‘They are considered the most effective strategy for pregnant smokers,’ it said.
‘They are also cost effective, with the calculated net benefit (after taking into account … the incentives used) being around A$4,300 per smoker, per attempt to quit.
‘There have been a number of studies showing their benefits.’
The full story is at: https://theconversation.com/why-we-should-pay-people-to-stop-smoking-84058.
October 3, 2017
Funding applications sought
Philip Morris International said on Friday that it was calling for funding proposals under PMI IMPACT, its US$100 million global initiative to support third party projects dedicated to fighting illegal trade.
‘Proposals can come from private, public, or non-governmental organizations, and interested organizations must submit their applications by November 15, 2017,’ the company said in a note posted on its website.
‘For this second funding round, PMI IMPACT will focus on initiatives that address converging forms of illegal trade and related crimes, such as corruption, money laundering, and organized criminal networks.
‘The projects can be implemented anywhere in the world, but should have an impact in one or more of these geographic areas: Eastern Europe, Middle East, North Africa, Tri-Border Area in South America, Central America, South and Southeast Asia.
‘As highlighted by expert speakers from public institutions, law enforcement, the private sector, and civil society at a two-day conference on Combating Illicit Trade, held in London earlier this week with the support of PMI IMPACT, illegal trade takes many forms – ranging from the smuggling and counterfeiting of goods to human trafficking, and the trade in drugs, arms, and wildlife. Illegal activities are frequently interlinked and converge, as criminals exploit the same large-scale trafficking routes and modes of operation.’
PMI said the PMI IMPACT Expert Council would review and select the projects for funding.
“We are looking forward to receiving cutting-edge proposals that will help private and public organizations improve their knowledge and efficiency in the fight against this growing concern worldwide,” said Alain Juillet, a member of the PMI IMPACT Expert Council.
Information on how to apply for the second funding round is at: http://www.pmi-impact.com/Apply/How.
October 2, 2017
Support for tobacco control
The British government’s Department of Health is committing £15 million to bolster international support for a tobacco control project in Sri Lanka, which is believed to have the world’s highest rate of oral cancer among men, according to an EconomyNext story.
The new project will promote accelerated implementation of the World Health Organization’s Framework Convention on Tobacco Control in low- and middle-income countries, with Sri Lanka one of 15 priority countries.
The British High Commissioner to Sri Lanka James Dauris said 60 countries had applied for support from the WHO.
‘Priority countries weren’t selected on the basis only of need, but also on level of commitment,’ he said in a statement.
Tobacco use was one of the principal causes of oral cancer and in Sri Lanka oral cancer was the most common form of male cancer, Dauris said.
“I understand that Sri Lanka is the only country in the world where this is so,’ he added. “This alone is a good argument for investing in change.”
Evidence from around the world confirmed that measures that reduced the burden of tobacco-related death and disease, freed-up money and resources that could be spent and invested in more productive ways.
September 29, 2017
Imperial Brands on track
Imperial Brands said today that it was on track to meet earnings expectations for the full year to the end of September at both constant currency and reported exchange rates.
In a trading update posted on its website, the company said it was continuing to invest in its strategy to drive sustainable growth in a ‘particularly challenging industry environment’. ‘The impact of this investment on earnings is mitigated by our cost programs, pension scheme restructuring and ongoing efficiencies,’ it said.
‘Our increased investment is delivering a stronger second half performance with market share gains in most of our priority markets and continued outperformance of our Growth Brands…
‘In next generation products, we are gearing up for new launches in an extended footprint in the coming year focused on improving the consumer experience and further building the blu brand…
‘Earlier in the month we took the opportunity to realise value via a further sell-down of our Logista holding, and we are using the proceeds to buy-back shares and reduce debt, redeploying capital in an efficient manner.
‘Further to overnight media speculation, we confirm that we have been working, together with other stakeholders, to seek to create a sustainable future for the UK wholesaler, Palmer & Harvey, with whom we have a close trading relationship.’
Imperial is due to announce on November 7 its preliminary results for the year to the end of September.
September 28, 2017
Tracking tobacco costly
The chief executive of the UK’s Association of Convenience Stores, James Lowman, has said that EU regulations governing the operation of track-and-trace systems for tobacco products will place significant cost and time burdens on retailers, according to a Talking Retail story relayed by the TMA.
In the EU, the revised Tobacco Products Directive (TPD) foresees the adoption of a track-and-trace system for cigarettes and roll-your-own tobacco by May 2019 and for other tobacco products by 2024.
Lowman said it was important to combat the illegal tobacco trade across the supply chain.
However, he said: “[T]hese regulations would place a significant cost and time burden on retailers, requiring them to register and pay for identifier codes for both their overall business and each individual store, and produce them each time they purchase tobacco”.
Article 8 of the revised TPD was said to have provided for the establishment of ‘a global tracking and tracing regime, proposed by the European Commission’s consultant Everis, consisting of national and regional systems…’.
Lowman said his association would be working with the UK government and the EU to amend the regulations.
A consultation on the proposals is due to run until October 2.
September 20, 2017
JT’s Mighty deal completed
Japan Tobacco Inc. said yesterday that the JT group had completed the acquisition of assets related to the tobacco business of the Philippines-based Mighty Corporation.
The agreement to acquire the assets was announced by the company on August 22.
‘The acquisition is in line with JT Group’s geographic expansion for sustainable growth,’ JT said in a note posted on its website.
‘It also provides a nationwide distribution network in the Philippines and strengthens the group’s brand portfolio with the addition of local brands such as “Mighty” and “Marvels”.
‘The total amount of the acquired assets is PHP46.8 billion (approximately US$936 million).’
JT said the transaction would not have any material impact on the group’s consolidated performance for the fiscal year 2017.
Meanwhile, a GMA News story published today had it that Mighty Corp. had said previously that it intended to use the proceeds from the deal to settle its tax liabilities amounting to P25billion, other fees, and value-added tax.
September 8, 2017