Carreras Half Year Performance Improves Despite Tough Environment

In the 6 months ending September 30, 2018, the company earned $1.74Bn (EPS: $0.36) in profit which translates to a 4% increase over the $1.67Bn (EPS: $0.34) earned over the same period last year. Carreras performance was driven by an increase in revenues, which grew by 4% to $6.3Bn, as sales volumes recovered. Meanwhile, thanks to the cost reduction strategy, general and administrative expenses declined by 8% to $906.9Mn. Despite the YTD improvement in Carreras operating performance, management stated that the company is still being affected by the continued presence and growth in the illicit trade in cigarettes as well as the imposition of ZOSO which has affected the consumption of its products.