The directors of cigarette seller PJ Carroll & Co have said the tobacco black market in Ireland "remains a huge challenge facing the business” and hit company tobacco revenues in 2021.
New accounts for PJ Carroll & Co Ltd show that in 2021, pre-tax profits reduced by 30 per cent to €3.29 million.
Gross revenues, that include duty excise and other taxes of €183.1 million, declined by two per cent in 2021 from €214.29 million to €209.9 million.
The firm’s net revenues increased by 11 per cent from €24.2 million to €26.85 million and the directors state that the revenue increase was driven by a price increase in combustible products as well as by increase in revenue from Vapour products.
The business – owned by British American Tobacco plc – paid out a dividend of €5 million during the year.
On the black market remaining a huge challenge to the business, the directors state that in the current year black market almost returned to pre-COVID levels of 20.5 per cent.
They state that “this caused further drop in revenue compared to 2020”.
The firm’s concerns relating to the illicit trade are supported by new figures provided by the Minister for Finance Michael McGrath TD in a written Dáil question to Fine Gael TD Colm Burke on Tuesday.
In the reply, Mr McGrath confirmed that in 2021, Revenue seized over 60 million illicit cigarettes and approximately 38,250kg of illicit tobacco compared to over 48 million illicit cigarettes and approximately 7,100kg of illicit tobacco seized by Revenue in 2020.
In 2022, Revenue seized over 51 million cigarettes and approximately 11,800kg of illicit tobacco in 2022 and to the end of February this year, over 9 million illicit cigarettes and 7,200kg of illicit tobacco have been seized.
The directors for PJ Carroll & Co state that the net effect on the legal market of repeated excise increases, sustained level of illicit trade and the introduction of stringent regulatory measures such as already implemented standardized packaging has been an accelerated decline in legitimate cigarette sales and growth in roll-your-own (“RYO”) volume.
Numbers employed by the firm totalled 21 and staff costs amounted to €2.17 million. Directors pay totalled €309,000.
