Rothmans has been increasing its share of a declining market but says high taxes and the growth of contraband cigarette sales present “an escalating problem.”

Despite its woes in the “challenging” tobacco business, the country’s second-largest cigarette company increased its profits by seven per cent in its financial year ending March 31.
Sales at operating company Rothmans, Benson & Hedges Inc., after excise duty and taxes, increased 2.4 per cent to $652.3 million from $636.8 million, “primarily due to price increases across all product categories and increased volumes in the cigarette price category,” said CEO John Barnett. He also told analysts that “we continue to wait and watch” for acquisitions, most likely in Western Europe. (pi)