Camel and Pall Mall Brands Offered RAI Extra Gains

November 28, 2014

Reynolds American International (RAI) these days declared Q2 2014 earnings per share of around $0.89, higher by 6.0 % in comparison to the previous quarter, as larger cigarette prices more than compensated lower cigarette volumes. “Reynolds American demonstrated a really great second quarter, with bigger earnings highlighting carried on solid overall performance by our business segments,” explained Susan M. Cameron, chief executive officer of RAI. “The conditions are still very competing, and we are glad to declare that all of our companies’ major cigarette brands obtained market share.”


On July 15, RAI revealed strategies to purchase Lorillard, and that it is also following up on a contract with British American Tobacco for next-generation products. “We are very thrilled with these innovations, which give the opportunity for attractive growth prospective,” Cameron added. “Our overall performance illustrates the achievement of our approach to improve earnings,” Cameron stated. “Moreover, RAI’s conclusion of its $2.5 billion share buyback program in the course of the quarter is extra evidence of our devotion to returning value to our investors.”

RJR Tobacco’s Q2 cigarette shipments dropped 8.3 % from the previous quarter, whilst industry volume decreased 5.5 %. Taking into consideration modifications for wholesale inventory adjustments, RJR Tobacco reports its volume decreased by 6.8 %, while industry volumes dropped by 4.4 %.

RJR Tobacco’s entire cigarette market share decreased by 0.1 percentage points from the previous quarter, at around 26.5 %, however Camel and Pall Mall, the company’s key brands, provided extra market share gains. The solid overall performance demonstrated by Camel and Pall Mall lead to a boost of 0.5 percentage points in their blended share, to 19.5 %. These cigarette brands currently constitute more than 70 % of the company’s overall cigarette portfolio.

Camel improved Q2 market share by about 0.4 percentage points from the previous quarter, to about 10.2 %, gaining from progress in the brand’s premium menthol varieties. Pall Mall, the country's No. 1 value brand, improved Q2 market share by approximately 0.1 percentage points from previous 9.3 %. Pall Mall provides adult cigarette smokers a very affordable offer- a longer-lasting cigarette at a reasonable price.