Philip Morris profit indents 8.3% in Q2

SAO PAULO-the Philip Morris International presented on Thursday net profit attributable to shareholders of $ 2.12 billion in the second quarter, down 8.3% compared to the same period in 2012. The owner of the Marlboro cigarette brand was affected in three months by the bump in the level of taxes levied on their products.
According to the report published on Thursday, the Group's net income rose 2.2% in the same comparative bases, topping $ 20,48 billion. The cost of sales grew at slower pace of 1.3%, totaling $ 2.7 billion. The problem is that the company had to pay $ 12.57 billion of taxes on cigarette, 5.4% higher level on the same comparison.
The company's revenue was better only in two regions in which it operates: that combines Eastern Europe, Middle East and Africa (high of 1.4% to US $ 2.18 billion) and the meeting of Latin America and Canada (1.1% advance to $ 838 million).
As a result, the gross profit from the American fell 4.4% to $ 5.22 billion. To avoid a further erosion in its balance sheet, Philip Morris decided to hold spending on sales, research and development. These operating expenses rose by only 1.8%, to $ 1.8 billion in the quarter.
The result also shows that the operating profit shrank by 7.5% in the three months, reaching US $ 3.33 billion. The net result was not worse only because the Group had to pay 9.7% less taxes on the profit in the period, or $ 892 million.