Cigarette giant British American Tobacco (BAT) announced on Tuesday a 29% slump in pre-tax profits to £2,588-billion ($4,503-billion) in 2005, but the data was skewed by big deals from the previous year.
BAT, maker of Kent and Dunhill cigarettes, said in an official results statement that revenue sank 13% to £9,325-billion last year, compared with 2004.
Operating profit, meanwhile, plunged 36% to £2,420-billion.
The heavy falls were “mainly due to the impact in 2004 of a significant £1,389-billion gain on the Reynolds American transaction”, BAT added.
Data from 2004 took account of the merger of its United States business Brown and Williamson with rival RJ Reynolds in July that year, creating Reynolds America, in which BAT owns a 42% stake.
It also included the sale of Italian distribution arm Etinera in December 2004.
Like-for-like group operating profit, excluding the effects of the two major transactions, rose 9% to £2,607-billion in 2005.
“I am confident that we can continue to deliver quality earnings growth and good cash flow over the long term,” said BAT chairperson Jan du Plessis in comments accompanying the release. – AFP