Cigarette shipment volume at RJ Reynolds Tobacco (RJR) declined 6 per cent in the three months to 30 June, a fall nearly identical to the overall US industry slump, said parent company Reynolds American.
RJR sales dipped 2.2 per cent to USD 1.8 billion (EUR 1.4 billion) but settlement adjustments and higher prices raised operating income 11.6 per cent to USD 663 million, the company said. Sales and operating profit at the American Snuff and Santa Fe Tobacco units posted double-digit percentage increases, Reynolds American said.
Shipping volume fell to 17 billion cigarettes. RJR’s top growth brands Camel declined 0.9 per cent to 5.5 billion units while Pall Mall shipping volume rose 0.5 per cent to 5.6 billion units.
Volume for the industry as a whole fell 6.1 per cent to 71.5 billion units. Both premium and value brands declined 6.1 per cent in the quarter, the company said.