Philip Morris CR yesterday disclosed its full-scope FY2003 CAS results. Recall that the company already reported worse-than-expected 2003 net profit two weeks ago. The figures came out weaker due to lower sales - mostly a result of poor exports to Slovakia after the excise tax hike there last year. Declining material costs (thanks to the extraordinary appreciation of the Czech currency to the USD) partially offset declining sales, but consolidated EBIT grew a mere 6% last year (we expected +16%).
The company's comments on the 2003 results, the outlook for 2004 and the dividend proposal are expected to be presented at the AGM on April 26. We estimate a gross DPS of CZK 1,575 to be approved.
Jan Hájek, Patria Finance