Where we are located
The region includes the following major markets:
Profit in the Eastern Europe region decreased by £51 million to £358 million. This was principally due to lower volumes and the adverse impact of exchange rates, mainly in Uzbekistan, although this was partly offset by price increases. At constant rates of exchange, profit would have increased by £19 million, or 5 per cent. Volumes at 128 billion were 2 per cent lower, mainly due to industry declines in Romania. Market share grew in the majority of markets and regional share was also higher.
Price increases and the improved product mix in Russia increased profit. Market share grew, despite volumes being in line with last year. The Group achieved leadership in the Premium segment and market share leadership in Moscow as a result of continued excellent performances by Kent and Dunhill.
Market share in Romania was up strongly, with an impressive performance by the market leader, Kent. Increased illicit trade due to numerous large excise-driven price increases meant industry volumes declined significantly. The volume decline was only partially offset by price increases, leading to a lower profit.
In Ukraine, market share increased strongly, and excellent profit growth was achieved as a result of an improved product mix, led by growth in Global Drive Brands and stronger pricing. Group volumes increased.
Results improved in Kazakhstan due to higher margins. Market share was up as a result of a strong performance by Kent and Pall Mall. The decrease of the Premium segment resulted in slightly lower volumes.
In Uzbekistan, market share grew strongly, driven by the growth of Kent and Pall Mall. However, industry volumes were lower as a result of an excise increase and profit was significantly impacted by adverse exchange rates.