Marlboro India seller Godfrey Phillips posts 8% pre-tax profit drop; shares fall

Godfrey Phillips India

03/11/2023 09:31

BENGALURU, Nov 3 (Reuters) - Cigarette maker Godfrey
Phillips India  GDFR.NS  on Friday reported its first drop in
quarterly pre-tax profit in two years, weighed by a sharp rise
in expenses.
    Shares of the company slid 9.2% after the results in their
biggest intraday drop since December.
    The company, which manufactures and distributes Marlboro
cigarettes under a license agreement with Philip Morris
International  PM.N , said profit before tax in the second
quarter fell 8.2% to 2.19 billion rupees, as expenses surged
nearly 20%.
    Total revenue from operations rose 15.4% to 13.75 billion
rupees, with revenue from its profitable division which sells
cigarettes, tobacco and related products climbing 16.6%.
    Revenue from its round-the-clock convenience store, 24Seven,
and confectionary sales grew 4.3% to 1.17 billion rupees, but
recorded a pre-tax loss of 158.9 million rupees.
    Shares of the company had risen nearly 30% in the quarter, a
opposed to a 1.6% fall in rival ITC  ITC.NS , which also makes
consumer goods.

($1 = 83.2400 Indian rupees)

 (Reporting by Chris Thomas in Bengaluru)
 ((chris.thomas@thomsonreuters.com;))