By Shauna Jemmott

LAST year was dubbed “another good year” for the sale of tobacco products by Demerara Tobacco Company (DEMTOCO), in spite of a challenging business environment that was largely due to the holding of national election.The company recorded a profit before-tax of $2.85 billion, and Chairman Alan Bergin has accredited the continued success of the company to the dedication and determination of its trading partners, who continue to deliver against all odds.

Speaking to shareholders and other stakeholders at the company’s 82nd Annual General Meeting (AGM) on Tuesday, Bergin made the announcement, much to the pleasure of all.

While the overall profit for the year was reduced by $18 million compared to 2014, efforts were focused on driving the marketing strategy of Bristol, the company’s flagship brand, to mitigate the impact on sales performance.

He said DEMTOCO has been supportive of efforts to tackle increased smuggling, which is occurring across other sectors.

As Demerara Tobacco Company continues to uphold high standards, delivering its responsibility through voluntary international marketing principles and corporate social investment, campaigning and awareness have been heightened to curb the sale of tobacco products to persons under 18 years old. This point was highlighted by Managing Director Maurlain Kirton, who said a ‘Youth Smoking Prevention Programme’ continues to gain prominence in a heightened campaign prohibiting sales of the company’s products to minors.

“During 2015, we supported this programme through visible signage and branded attire at our retail outlets across the trade,” she reminded. She said, too, that the team of distributors is trained in responsible marketing approach, and has been instrumental in communicating the message to the public.

Meanwhile, Bergin also said the company would continue to engage legislators on key issues surrounding its products, which would enable balanced regulations that would provide measures in the best interest of all.

“Our wealth of experience and knowledge can provide practical solutions to help regulators address key issues surrounding our products. This will enable us to have balanced regulations that will provide measures which would be in the best interest of all. The company will continue to engage regulators and key stakeholders on this matter,” she said.

Kirton, in delivering the report on the company’s performance and the annual accounts for 2015, said DEMTOCO delivered “a stable performance”, despite the prevailing economic conditions in an election year.

“These conditions resulted in down-trading and increased consumption of illicit brands,” she said, and added that while the ‘Pall Mall’ brand of cigarettes maintained its position in the low price segment, serving as a catcher brand for down-trading, the sales of Dunhill and Bristol cigarettes were reduced as a direct result of contraction in core consumer income, they nevertheless remained key market choices.

Overall, the volume of sales decreased by 4.1 per cent. This contraction of volume, according to Kirton, resulted in a reduction of cost of sales by $12.9 million, and the gross turnover for 2015 increased by $20.2 million.

The Target Operating Model and One SAP (TaO) were launched in the last quarter of 2015 with the intention of standardising business processes and providing real time information and robust controls.

“The performance this year, even though challenging, was directly influenced by the drive to manage an efficient cost base while remaining relevant and competitive to our consumers. We focused on maintaining our leadership position, protecting brand share and securing sustained shareholder value,” Kirton stated.

She also told the meeting that the company will continue to place emphasis on Bristol, its flagship brand, making it readily available at the retail level.