BAT Australasia Posts 7% Rise In Net Profit for 5-Month Period (fwd)

[Robert Weissman <rob@essential.org>]

BAT Australasia Posts 7% Rise In Net Profit for 5-Month Period
by Dow Jones Newswires
Source: The Wall Street Journal Interactive Edition, Tuesday, 10/5/99

MELBOURNE, Australia -- British American Tobacco Australasia Ltd.,
formerly Rothmans Holdings Ltd., Tuesday reported a 7% rise in net profit
for the five-month period ended Aug. 31, to 50.7 million Australian
dollars (US$33.54 million) from A$47.4 million a year ago.

BAT Australasia is nearly 60% owned by British American Tobacco PLC, and
was formed in September from the merger of Australia-based Rothmans
Holdings and WD & HO Wills Holdings Ltd.

As a result of the merger BAT Australasia is in the process of changing
its fiscal year end from Mar. 31 to Dec. 31, resulting in a one-off five
month reporting period. Profit rose on the back of a rise in sales revenue
to A$1.25 billion from A$1.20 billion a year ago.

Earnings per share rose to 41.6 Australian cents from 38.9 cents, while
profit before tax rose to A$80.7 million from A$74.4 million a year ago.
The company paid an interim dividend for the five months of 30 cents a
share, compared with 40 cents for the six months ended Sept. 30, 1998.

BAT Australasia said it expects to maintain dividends for the nine month
period ending Dec. 31, on a proportional basis in line with the 85 cents
paid out in the full year ended Dec. 31, 1998.

Higher profit from the Australian operation was partly offset by a fall in
profit from New Zealand, BAT Australasia said. "Although the company's
share of the cigarette market (in New Zealand) registered a small
increase, overall industry sales volumes were still depressed by last
year's 13% excise increase," the company said in a statement.

Profit in Indonesia was also down on the back of a cigarette tax increase,
but profit improved in both Papua New Guinea and Fiji.

Despite a looming hike in the tax levied on cigarettes in Australia, BAT
Australia Managing Director Gary Krelle said he remains "optimistic that
the group will continue to achieve satisfactory results." The new
Australian tax regime on cigarette comes into effect from Nov. 1.

URL for this Article:
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