Romania boosts BAT’s profit in Europe

“These results benefited from favorable exchange rates. If the exchange rate had been constant, operational profit would have risen 16 percent,” according to the company’s financial report.

Sales in Europe rose 3 percent, up to 53 million cigarettes, with good evolution in Russia, Romania, Switzerland and Spain, which compensated for the decline in the Czech Republic and Germany.

“In Romania, higher volumes and prices, and improving the mix of products, has led to a significant advance in profit,” the report states.

Globally, BAT registered a 1 percent increase in sales, up to 158.4 billion cigarettes.

BAT has been operating in Romania since 1997, when it opened a production unit in the city of Ploiesti, north of Bucharest. The unit produces an annual 16.7 billion cigarettes. The company has invested €140 million locally so far. Last year, it posted €882 million worth of business, 45 percent higher than in 2006.

The local cigarette market, including the black market, is worth some €2.5 billion, with BAT, JT International and Philip Morris International as main players.