Czech Philip Morris 1st Half Net Up 1% At CZK1.13 Billion

Source from:  Fox Business 08/30/2011

Philip Morris CR AS (BAATABAK.PR) said Monday its first-half consolidated net profit rose 1% on the year to 1.13 billion koruna ($68.1 million) in line with market expectations, but warned its sales remain under pressure as Czech and Slovak smokers shift to cheaper brands. The Czech Republic-based subsidiary of cigarette-maker Philip Morris International Inc. (PM) posted a 1.5% year-on-year revenue increase to CZK5.62 billion in the six months through end-June. The company doesn't report quarterly earnings. "Our shipment volume remains under pressure in both the Czech Republic and Slovakia, due primarily to continued consumer down-trading to cheaper tobacco products, including roll-your-own tobacco," Andras Tovisi, Philip Morris CR's Chairman, said in a statement. The Czech market share of Philip Morris CR declined 2.4 percentage points to 52.3%, according to ACNielsen data, which attributed the share drop to a shift by smokers to lower-margin local brands. Philip Morris CR sees the rest of 2011 as uncertain as its sales may remain under pressure due the ongoing down-trading by smokers and curbs in spending by consumers amid current economic uncertainties, the company said. Earlier this year the company reiterated its plan to continue paying out 100% of its net profit in dividends. The stock closed up 3.6% on the day at CZK10,895. Enditem