Rothmans eyes RI market

Rothmans eyes RI market

SYDNEY (Reuter): Cigarette manufacturer Rothmans Ltd said yesterday that the company would give special emphasis on the Indonesian market in the 1997/98 year.

"The Indonesian market, which ranks as the fifth largest cigarette market in the world, will be a major focus in order to capitalize on the gains now being made there," chairman John Utz told shareholders at the company's annual shareholders meeting.

He said that the group results for the three months to June 30 were below last year.

The company cited the tougher environment in Australia for the softer first quarter, saying the industry remained competitive.

"The highly competitive nature of our markets prevents any complacency about the future," Utz said.

Rothmans more than doubled its net profit for the year to March 31 to A$94.73 million and declared a final dividend of 25 cents per share and a special dividend of A$1 per share.

Responding to a shareholder question about the possible local impact of a recent settlement between American tobacco companies and U.S. states, Utz said he did not believe the settlement was of any relevance to the Australian market.

"I don't believe it is relevant. We have no operations in the U.S." he told the meeting.

The U.S. settlement sees U.S. tobacco companies obligated to pay US$368.5 billion over 25 years to compensate states and smokers and to fund programs to help people quit smoking.

Rothmans is about 50 percent owned by Rothmans International Ltd which is in turn owned 60 percent by Swiss firm Richemont AG and 40 percent owned by South African group Rembrandt Group Ltd.