Higher pricing and improved productivity boosted RJ Reynolds Tobacco profit in the first three months of 2013 but the company said slumping Doral value-brand sales lowered its share of the US cigarette market.

First-quarter profit without a one-time tobacco settlement payment of USD 202 million rose 9.2 per cent at RJR to USD 563 million, parent company Reynolds American (RAI) said in a statement. Cigarette shipping volume fell an estimated 5.6 per cent (adjusted for two fewer shipping days) and RJR’s market share declined 0.4 percentage points to 26.1 per cent.
Key brands Camel and Pall Mall increased market share, the former by 0.1 percentage point to 8.5 per cent and the latter by 0.5 percentage point to 9 per cent. Market share for subsidiary American Snuff Company’s Grizzly brand rose 1.1 percentage points to 29.8 per cent of the US market, RAI said.
“Overall, the external environment remained challenging,” said Daniel Delen, RAI president and chief executive officer. “Industry cigarette volumes were negatively impacted by higher energy prices, the expiration of the payroll-tax
holiday and fewer shipping days”. US industry cigarette volume fell 6.2 per cent in the first quarter, RAI said. (ci)