15 cases pending against PJ Carroll

Cigarette manufacturer PJ Carroll was facing 15 separate product liability cases in the Irish courts at the end of last year.

The claims against the tobacco seller are confirmed in its latest set of annual accounts, which show that the growth in illicit trade in cigarettes last year hit pre-tax profits at the Dublin-based firm.

The British-owned firm last year recorded a 9% decrease in pre-tax profits to €7.7m. In addition, revenues fell 4% — from €34.5m to €33.17m in the 12 months to the end of December.

The firm’s gross revenues, however, recorded a 3% increase to €253.4m.

However, this arose from increases in excise and other taxes resulting in the Government’s take from PJ Carroll’s revenues increasing from €211.1m to €220.3m.

According to the directors’ report, within the accounts, “in response to the large increases in part at the start of 2012 with both a Vat change and large excise increase, we estimate the illicit market has grown to 28% based on Eurobarometer independent sources and pack picks in market”.

The directors state that a 10% decrease in operating profits — from €9m to €8.1m — “was due primarily to reductions in sales and marginal increases in input costs”.

The figures show that the firm last year paid a dividend of €7.9m to its UK-based parent, British American Tobacco.

In relation to the cases being taken against the firm, a note attached to the accounts states that at the end of last December, there were 15 product liability claims against the firm and 18 against the industry here as a whole.

The note states that other claims taken against the firm and the industry “have been terminated through the dismissal of these claims by the courts or through the plaintiffs choosing to discontinue with their claims”.

The company said that adverse judgments in the 15 cases could materially affect the cash flow of the business, but added that it intends to “vigorously” defend all the claims.

The note adds: “If an adverse judgement were entered against PJ Carroll in the first instance, a right of appeal would exist.”

The numbers employed by the firm last year increased from 42 to 43 with staff costs declining from €3.89m to €3.76m.