February 13, 2018

Revenues for the nine months declined by 4% to $3.87 billion compared to $4.02 billion for the comparable period the prior year. The quarter added a 2% increase to close at $1.40 billion (2016: $1.36 billion).

Direct Expenses has declined by 4% to $1.84 billion relative to $1.90 billion for the same period in 2016. As a result, gross profit declined by 4% to 2.03 billion (2016: $2.12 billion) year to date.

The Company had a 3% decline in total operating expenses to $2.01 billion when compared to $2.06 million posted in the same period in 2016. This was mainly attributed to a 2% decline in the company’s Administrative expenses from $934.41 million in 2016 to $919.43 million. Also selling expenses decline by 7% from $599.38 million (2016) to $556.70 million (2017).

Other income year-to-date has amounted to $71.84 million (2016: $224.32 million) representing a 68%% decline.  An operating profit of $94.84 million was reported relative to an operating profit of $280.68 million reported in 2016. This represents a decline of 66% in operation profit.

Finance costs had a 4% decline moving to $29.65 million (2016: $30.97 million) for the period.

As a result, profit before tax amounted to $65.19 million relative to profit of $249.71 million reported in 2016. After considering tax of $21.41 million the company reported a net profit of $43.78 million (2016: $209.75 million) for the period. For the quarter a profit of $78.94 million (2016: $88.86 million) was reported.

The company reported an earnings per share of $0.018 relative to an EPS of $0.087 in December 2016. For the quarter the company reported earnings per share of $0.033 compared to 0.036 reportedin 2016. The twelve trailing months loss per share amounted $0.086. The number of shares used in our calculations is 2,422,487,654 units. Notably, RJR’s stock price closed trading on February 13, 2018 at $1.05.

Balance Sheet Highlights:

As at December 31, 2017, the Company reported total assets of $4.02 billion, an increase of $155.11 million when compared to $3.86 billion in the prior year.

Shareholders’ Equity as at December 31, 2017 was $2.597 billion a marginal decline compared to $2.60 billion for the prior year. This resulted in a book value per share of $1.072 (2016: $1.074).

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