A tax increase and the illicit trade in cigarettes put a damper on the financial results for Carreras for the first half of its financial year.
Total operating revenue and net income declined by four per cent and one per cent respectively to J$6.1 billion and $1.672 billion during the six months.
Carreras says there was a lower trade demand for cigarettes for both the first and second quarters. This was due mainly to volume decline experienced after the excise price increase which was implemented in March of three dollars per stick.
Carreras says the recovery of volumes after the excise increase has been at a much slower rate than expected.
The company says Carreras says it also noted during the period of review that tere was a significant increase in the illicit trade in cigarettes, particularly in the Kingston Metropolitan Area, St. Thomas, St. Mary and Clarendon.
Despite a five per cent increase in revenue, JMMB saw a decline in profit during the first six months of its financial year.
During the April to September period it earned $8.1 billion in revenue, up from $7.7 billion last year.
Net profit totaled $1.67 billion versus $2 billion during the same period in 2016.
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