Alliance One International sold 37.5 per cent less tobacco but improved profitability in the three months to 30 June as adverse weather delayed green tobacco purchases, the company said.

Kilos sold fell to 47.7 million and sales declined 35.1 per cent to USD 249 million (EUR 186 million) in Alliance One’s first fiscal quarter. Increased operating efficiency nearly doubled profit as a percentage of sales to 14.1 per cent from 7.4 per cent in the comparable quarter last year, the company said. Gross profit rose 23.2 per cent to USD 35.1 million.
"Challenging weather conditions in some regions and global markets that have entered oversupply have delayed purchasing green tobacco,” said Chief Executive Officer Pieter Sikkel. “Market prices paid for green tobacco from suppliers have been generally lower than last year. This is consistent with conditions highlighted at fiscal year-end 2014. The slow start reduced first quarter sales versus last fiscal year and is expected to have the same impact through the second quarter, but should normalize and result in similar full year revenue.”