British American Tobacco 2017 Profit Soars on Reynolds American Acquisition
February 22 2018 - 3:13AM
Dow Jones News
By Carlo Martuscelli
British American Tobacco PLC (BATS.LN) said Thursday that pretax
profit increased more than fourfold in 2017 on gains related to the
acquisition of Reynolds American Inc. (RAI).
The producer of Lucky Strike and Dunhill cigarettes posted a
pretax profit of 29.59 billion pounds ($41.30 billion) for the year
ended Dec. 31 compared with GBP6.25 billion in the previous-year
period. Revenue increased 38% to GBP20.29 billion.
Net profit was GBP37.53 billion, up from GBP4.65 billion the
year before.
The sharp increase in profit was attributable to the acquisition
of Reynolds American, which resulted in a gain of GBP23.29 billion
pounds, as well as deferred tax credits from U.S. tax reform.
Profit from operations was GBP6.48 billion compared with GBP4.66
billion the year before.
BAT said the company had established a new strategic portfolio
of brands that combined its existing Global Drive Brand portfolio,
with the strategic brands that were part of RAI, which include
Camel, Newport and Natural American Spirit, as well as its
reduced-risk products.
Write to Carlo Martuscelli at carlo.martuscelli@dowjones.com
(END) Dow Jones Newswires
February 22, 2018 02:58 ET (07:58 GMT)
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