Tobacco company Gallaher, which makes Benson & Hedges cigarettes, today reported a 15 per cent surge in pre-tax profits for last year and said 2003 was on track to meet market expectations.
The group, which also makes Silk Cut and Mayfair brands and Hamlet cigars, said sales in the year to December 31st had risen by 42 per cent to 152.7 billion cigarettes, driven by strong growth across international operations.
Pre-tax profits were £378 million compared with £329 million in 2001, aided by the first full year of contributions from Austria Tabak, the firm Gallaher acquired in 2001.
Turnover soared by 47 per cent to £8.4 billion because of the benefit of Austria Tabak sales.
Since floating in 1997, Gallaher has been pushing its expansion overseas in an effort to reduce its exposure to the flagging UK market.
The move has seen Gallaher increase its presence in Central and Eastern Europe, the former Soviet Union, Central Asia and Asia Pacific. It is pushing into China after establishing offices in Beijing, Shanghai and Guangzhou.
In the UK, which provides 44 per cent of revenue, Gallaher said it had reversed the recent downward trend in market share with volumes down a fraction to 21.4 billion cigarettes from 21.5 billion in 2001.
Volumes in continental Europe increased by 10 per cent to 45.7 billion cigarettes with good growth recorded by Benson & Hedges American blend variants and Memphis cigarettes.
Across the rest of the world, Gallaher said volumes increased by 53% to 11.3 billion.