A significant reduction in the supply of illicit cigarettes due to Covid-19 helped PJ Carroll & Company increase gross sales from â¬ 11.5 million to â¬ 214.29 million last year.
The Dublin-based cigarette company saw a 90% increase in pre-tax profits to 4.68 million euros last year, from 2.4 million euros in 2019, the directors said in a statement. note attached to his latest accounts.
The increase in sales was also driven “by increased volumes and prices of fuel products as well as increased revenues from steam-based products,” the accounts said.
But they warn: âThe black market remains a huge challenge for the company. And they expect the illicit market “to return to the same pre-Covid levels in 2021 once the economy recovers from the pandemic”, possibly causing “further decline in sales volumes.”
The figures show that of the 214.29 million euros in gross receipts last year, 190 million euros were made up of excise duties and other taxes.
Regarding the risks facing the company, the accounts indicated that repeated increases in excise duties, the sustained level of illicit trade and the introduction of strict regulatory measures such as standardized packaging had led to an accelerated decline in legitimate sales of cigarettes.
The stories also express concern over future bans of certain flavors in vapor-based products and on menthol cigarettes.
Cumulative dividends of 5 million euros were paid in September this year for fiscal years 2019, 2020 and 2021. Net sales increased by 4% last year to reach 24.2 million euros. euros. The company recorded an after-tax profit of 4 million euros.
Regarding contingent liabilities, a note with the accounts indicated that at the end of 2020 there were two product liability cases pending against the company. The memo stated that the company is committed to vigorously defend all claims.
Last year, the number of employees at the British American Tobacco-owned company increased from one to 20.