British American Tobacco 2017 Profit Soars on Reynolds American Acquisition
By Carlo Martuscelli
British American Tobacco PLC (BATS.LN) said Thursday that pretax profit increased more than fourfold in 2017 on gains related to the acquisition of Reynolds American Inc. (RAI).
The producer of Lucky Strike and Dunhill cigarettes posted a pretax profit of 29.59 billion pounds ($41.30 billion) for the year ended Dec. 31 compared with GBP6.25 billion in the previous-year period. Revenue increased 38% to GBP20.29 billion.
Net profit was GBP37.53 billion, up from GBP4.65 billion the year before.
The sharp increase in profit was attributable to the acquisition of Reynolds American, which resulted in a gain of GBP23.29 billion pounds, as well as deferred tax credits from U.S. tax reform.
Profit from operations was GBP6.48 billion compared with GBP4.66 billion the year before.
BAT said the company had established a new strategic portfolio of brands that combined its existing Global Drive Brand portfolio, with the strategic brands that were part of RAI, which include Camel, Newport and Natural American Spirit, as well as its reduced-risk products.
Write to Carlo Martuscelli at firstname.lastname@example.org
(END) Dow Jones Newswires
February 22, 2018 02:58 ET (07:58 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.