Rothmans Inc. Announces Financial Results for Fiscal 2008

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[{"type":"text","content":"\n\n\n\nTrading: TSE: ROC\n\n\nTORONTO, May 16 /CNW/ - Rothmans Inc. today announced results for the\nfourth quarter and fiscal year ended March 31, 2008.\n\n\nRothmans' earnings for the year were $117.6C million or $1.73 per basic\nshare compared with $99.8 million or $1.47 per basic share in fiscal 2007.\n\n\nSales at 60%-owned subsidiary Rothmans, Benson & Hedges Inc., net of\nexcise duty and taxes, for the 2008 fiscal year were $670.6 million compared\nwith $618.6 million in fiscal 2007.\n\n\nInvestment income of $12.2 million for fiscal 2008 was $3.1 million\nhigher than fiscal 2007, due to the higher average cash balance held and a\nhigher rate of return experienced during the year.\n\n\nRBH's EBITDA margin was 50.9% for the year, compared with 47.6% in fiscal\n2007. The increase was principally due to price increases across all product\ncategories partially offset by volume shifts into lower-priced tiers of the\ncigarette price category and higher general and administrative expenses,\nincluding incentive plan costs and slightly higher spending on retail trade\nprograms.\n\n\nRBH shipped a total of 10.7 billion equivalent sticks into the domestic\nmarket during fiscal 2008, representing a 0.2% increase compared to fiscal\n2007, due mainly to increased shipments of RBH price category cigarettes\noffsetting declines in both premium cigarette and fine cut shipments. While\nRBH has continued to demonstrate strong volumetric and financial performance\nin the face of a declining market, the reduction in overall industry\nprofitability and the apparent growing presence of contraband product in the\nCanadian market are expected to continue to present significant challenges for\nRBH for the foreseeable future.\n\n\nDuring fiscal 2008, the Company paid dividends of $88.5 million, versus\n$81.6 million in fiscal 2007. The fiscal 2008 regular dividend was $1.30 per\nshare compared to $1.20 in fiscal 2007.\n\n\n"RBH has continued to perform very well, having maintained total domestic\nsales volumes and increasing earnings by almost 18% compared to fiscal 2007,"\nsaid John Barnett, President and Chief Executive Officer of Rothmans Inc. and\nRBH. "Year over year, we have grown domestic cigarette market share by\n1.2 share points according to the Nielsen Company which, given our volume\nperformance, indicates continued ...

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