Tobacco company Gallaher Group has reported a 10.6 per cent rise in 2001 profits, at the top end of expectations, and says 2002 trading has begun well and is in line with its own forecasts.
The group, which produces cigarettes such as Benson & Hedges and Silk Cut, announced 2001 pre-tax profits before goodwill amortisation and exceptional charges of £387 million sterling. Most analysts expected underlying pre-tax profits in a tight range of £380-385 million.
The group has been expanding abroad recently and it bought Liggett-Ducat in Russia in August 2000 for $390.5 million and then Austria Tabak late last year for $1.7 billion to reduce its dependence on the British tobacco market.
Gallaher shares have outperformed the London stock market by 17 per cent over the last 12 months, but have lagged the British tobacco sector by seven per cent.