Philip Morris CR (PM CR) is expected to disclose its full-year 2002 CAS results today (2 p.m. CET). So far the company has reported only its unconsolidated 2002 CAS net income, at CZK 3.98 bil. (+17% y-o-y), i.e., the 2002 EPS is CZK 1,448. We believe the payout ratio could approach 100%.
The 2002 results will be affected by decreased demand in Slovakia given a considerable excise-tax increase there at the beginning of last year, though we expect that this will be largely offset by PM CR's lower material costs due to the appreciated Czech currency in 2002 (vs. the US dollar).
CAS uncons. 2002e 2001 % change
Sales 13,458 13,594 -1.0%
EBITDA 5,669 5,328 6.4%
EBIT 5,239 4,885 7.2%