Empresas La Moderna, the Mexican group which has recently sold Cigarrera La Moderna, its cigarette division, to BAT Industries of the UK, reported a sharp drop in sales and profits for the first half of 1997

Group sales fell 8 per cent to 6.56 billion pesos (US$ 825 million) and consolidated operating profit fell 42 per cent to 552 million pesos, compared with 956 million pesos in the same period of 1996.
Empresas La Moderna claimed that unfair competition from contraband cigarettes cost the company US$ 15 million in lost income.