LONDON: British tobacco company Rothmans International said its pre-tax profit slumped 27 per cent after it took heavy one-time charges for the reorganisation of its business.
However, its market share in Asia grew. Gavin Launder, an analyst at Goldman Sachs, said: ''The worst fears are confirmed in Europe, where volumes are weaker. But Asian business did better than expected.'' Rothmans posted a pre-tax profit of GBP343.6 million (about HK$4.06 billion) in the year ended March 31, after charges.
Earnings figures include a one-time pre-tax charge of GBP31.2 million for the reorganisation of the company last October and a charge of GBP123.8 million for cost-cutting and changes in its European operations.
The charges were greater than most analysts had anticipated. Rothmans had been expected to post pre-tax profit of GBP435 million for the year to March 31, after a one-time charge of GBP48 million.
''The results were more or less in line with expectations - we thought there would be some restructuring costs for Europe but we did not know just what they would be,'' said Mr Launder. ''Some people, however, might be disappointed in the dividend.'' Rothmans said it would pay a full year net dividend of 13.2 pence per share.
Analysts surveyed had expected the group to post a net dividend of about 13.8 pence per share, compared with 11.5 pence a year earlier. The company will also pay a net dividend of 46.365 Dutch cents per share.
