Czech Philip Morris Cuts Div as 2011 Profit Rises

Source from:  Reuters 03/30/2012

* Proposes 920 crown/share dividend vs 1,260 crowns last year * Net profit rose 6.3 percent in 2011 * Revenue up, exports grow (Adds details, shares) PRAGUE, March 27 (Reuters) - Czech cigarette maker Philip Morris CR's proposed a lower dividend on Tuesday after a rise in 2011 profit, opting against paying out retained earnings as it did last year. The group, majority owned by Philip Morris International , proposed a gross dividend of 920 crowns ($49.93) per share on 2011 profit, it said in an invitation to its annual general meeting. Last year, Philip Morris CR paid a 1,260 crown per share dividend from profits and retained earnings. It had said in May last year it would not likely repeat the step, returning to a more "normal" payout where nearly all profit goes to a dividend. Consolidated net profit rose to 2.54 billion crowns ($137.84 million) last year from 2.39 billion in 2010. Revenue rose 6.6 percent to 12.16 billion, helped by a 13 percent rise in exports while shipments declined in the Czech and Slovak markets where it operates. "Despite the improvement of our financial results, our cigarette shipment volume remained under pressure both in the Czech Republic and Slovakia, reflecting continued share declines for lower-priced local heritage brands and down-trading to cheaper tobacco products," Chairman Andras Tovisi said. The Czech Republic, the company's main market, is facing a stagnant economy this year and further government austerity that has pushed consumers into cheaper brands. The excise tax on tobacco products rose in January and is due to increase again in 2014. Media reported on Monday that the Finance Ministry is considering a slight tax rise next year to soften the impact of the expected increase in 2014. Shares in Philip Morris CR have held up over the last year, rising 22 percent and well outperforming a 20 percent drop in Prague's main index. ($1 = 18.4268 Czech crowns) (Reporting by Jason Hovet; Editing by Hans-Juergen Peters) Enditem