China Cigarette Sales up Slightly in Jan. Year-on-year

Source from:  China Tobacco magazine 03/11/2009

The tobacco industry of China registered slightly higher growth of cigarette production, sales and　inventory in Jan. 2009. In Jan., the key cigarette brands of China’s tobacco industry performed well on the market, with their retail prices remaining stable. In Jan., the economic operation of the tobacco industry was in a continued favorable trend of development. In December alone, the tobacco industry registered balanced growth of both cigarette production and sales and declines in cigarette inventories, with economic returns going up year-on-year. [b]DATA AND ANALYSIS[/b] [b]CIGARETTE PRODUCTION[/b] In Jan., the tobacco industry of China produced 317.4 billion cigarettes (6.34 million cases) for domestic sales, an increase of 3.65 billion cigarettes (73000 cases), or 1.2 percent, over the same period of 2008. Industrial enterprises reached 84.72 billion yuan on sales income, up 10.67 billion yuan, or 14.4 percent over year-on-year. [b]CIGARETTE SALES[/b] In Jan. , the tobacco industry of China sold 317.3 billion cigarettes (6.346 million cases), an increase of 30.70 billion cigarettes (0.614 million cases), or 10.7 percent, over the same period of 2008. Commercial companies reached 113.48 billion yuan on sales income, an increase of 22.39 billion yuan, or 24.6 percent, over the same period of 2008. In Jan., grade one, grade two and grade three cigarette increased 1.2, 3.0, 2.6 percent respectively; grade four and grade five decreased 1.6, 5.2 percent respectively. [b]CIGARETTE INVENTORIES[/b] At the end of Jan., the cigarette inventories on the part of China’s tobacco industry reached 152.65 billion cigarettes (3.053 million cases), up 2.5 billion cigarettes (50,000 cases), or 1.7 percent from the level of 150.15 billion cigarettes (3.003 million cases) at the same time of 2008. Also at the end of Jan., the ratio of inventories to sales of Grade One cigarettes on the part of the commercial sector of China’s tobacco industry was 0.37 down from the level of 0.43 at the same time of 2008; Grade Two cigarettes 0.45 up from 0.40; Grade Three cigarettes 0.37, down from 0.38; Grade Four cigarettes 0.34, up over 0.37; and Grade Five cigarettes 0.40 down from 0.52 [b]TAXES AND PROFITS[/b] In Jan. the tobacco industry of China generated 92.16 billion yuan in manufacturing and commercial taxes and profits, an increase of 18.5 percent over the same period of 2008, with the amount of manufacturing taxes and profits reaching 58.61 billion yuan, up 10.8 percent year-on-year, and with the amount of commercial taxes and profits reaching 333.55 billion yuan, up 35.0 percent year-on-year. In Jan., the tobacco industry of China earned 42.59 billion yuan in manufacturing and commercial profits, an increase of 24.7 percent over the same period of 2008, with the amount of manufacturing profits going up 8.9 percent year-on-year to 16.12 billion yuan, and with the amount of commercial profits reaching 26.47 billion yuan, up 36.9 percent year-on-year. Enditem