IN the face of expressed concerns over the passage of the Tobacco Control Bill 2017 and the effects the new law would have on its sales, the Demerara Tobacco Company (DEMTOCO) has seen a stable profit for the first half of 2017.

An Interim Financial Report published in the September 5th, 2017 edition of the Guyana Chronicle, showed that as of June 30, 2017, the gross profit for the first half of the year was stable when compared to the same period in 2016, despite the attainment of a lower sales volume.

According to the report, profit before taxation decreased by just 4 percent, primarily as a result of increased overheads and expenditures on marketing activities, to support the company’s sales volume achievement despite the reduced consumer disposable incomes seen in the market. The report stated that the move facilitated the delivery of the promised shareholder value.

The chairman’s review stated that the company continues to invest in its portfolio brands, including Pall Mall, Bristol and Dunhill, which it said cater for all consumer segments across the country. Focus has also been placed on working closely with the retail and wholesale channels to ensure that they continue to invest in all the brands the company produces. In this way, the tobacco company said, it would be supporting the legal tobacco portfolio in the market.

The company said it has noted the passage of the Tobacco Control Bill 2017, reminding that it is not opposed to the regulations and will ensure that the company is fully compliant, working with its retailers and consumers in similar fashion. And although the Bill has already been signed into law, the company is still appealing to the President for a review by a Sub- Committee to ensure a balanced legislation, which it said not only effectively regulates all players within the industry, but also respects and protects the rights of adult smokers.

While President David Granger has assented to the Tobacco Control Bill 2017, it will take close to a year before it comes into effect. The new law will prohibit smoking in public spaces and the sale of single cigarettes. The move is aimed at safeguarding non-smokers from the harmful effects of tobacco.

The Head of State assented to the Bill on August 22 this year, less than a month after it was passed in the National Assembly.
During the tabling of and debate over the Bill, DEMTOCO raised concerns that its profits could be affected, as it would give rise to the black market trade of tobacco products and ultimately affect the revenues of legitimate businesses.

The Tobacco Control Act provides for the adoption and implementation of tobacco-control policies in accordance with the World Health Organisation’s (WHO) Framework Convention on Tobacco Control (FCTC).
Additionally, it will serve as the legal regulator for administration, inspection and enforcement, while providing legislative protection from exposure to second-hand smoke by eliminating public-smoking.