A significant reduction in the supply of illicit cigarettes due to Covid-19 helped PJ Carroll & Company increase gross sales by €11.5 million to €214.29 million last year.
The Dublin-based cigarette firm recorded a 90 per cent increase in pre-tax profits to €4.68 million last year from €2.4 million in 2019, it directors said in a note attached to its latest accounts.
The sales increase was also driven “by volume and price increase in combustible products as well as by an increase in revenue from vapour products”, the accounts said.
But they caution: “The black market remains a huge challenge facing the business.” And they expect that illicit market “to return to the same pre-Covid levels in 2021 once the economy will recover from the pandemic”, possibly causing a “further drop in sales volumes”.
The figures show that, of the €214.29 million in gross revenues last year, €190 million was made up of excise duties and other taxes.
On the risks facing the business, the accounts said repeated excise increases, the sustained level of illicit trade and the introduction of stringent regulatory measures such as standardised packaging had seen an accelerated decline in legitimate cigarette sales.
The accounts also express concern about future bans on certain flavours in vapour products and on menthol cigarettes.
Cumulative dividends of €5 million were paid out in September of this year in respect of 2019, 2020 and 2021. Net revenues increased by 4 per cent last year to €24.2 million. The company recorded profits after tax of €4 million.
Claims
On contingent liabilities, a note with the accounts said that, at the end of 2020, there were two product liability cases outstanding against the firm. The note said that the company was committed to defending all the claims vigorously.
Numbers employed by the British American Tobacco-owned company last year increased by one to 20.
