Carreras revenue back on track
Published:Friday | August 6, 2021 | 12:09 AM
Sales at cigarette trader Carreras Limited have bounced back to pre-pandemic levels, but earnings still lag.
The seller of the Matterhorn and Craven A brands, among others, made revenue of $3.43 billion over three months ending June, compared to $2.7 billion in the corresponding quarter of 2020.
However, sales were flat relative to the $3.46 billion of revenue collected in the pre-pandemic 2019 first quarter.
The rise in revenue over April-June 2021 was due mainly to an increase in the volume of cigarettes sold relative to 2020, the company said. In terms of profit, the company earned $863 million for the quarter, up from $652 million in 2020, but below the $923 million in 2019.
The illicit trade in cigarettes continues to eat into Carreras’ market, a long-standing, and seemingly intractable, problem that the company continues to fight through various initiatives.
“One such initiative is the redesign of our route to market, which allows us to be present in some areas with a high presence, as well as to bring awareness of the issues to a greater audience,” said Managing Director of Carreras Raoul Glynn in a statement accompanying the financial results.
Carreras estimates that at least two in every 10 cigarettes consumed locally are illicit, which means they are smuggled into Jamaica and fall below the tax radar, or are counterfeit. Illicit cigarettes cost the Government $2.1 billion in lost taxes annually, according to estimates from Carreras.
In April, Carreras announced that it would consider entering the marijuana dispensary market, but added that it would need time and research, prior to making any application.