22 DECEMBER 1939, Page 30


Carreras, the cigarette and tobacco manufacturers, achieved their record profit last year through an increased demand for their established brands and in spite of a lower profit margin. In announcing this at the meeting on Tuesday, Mr. Edward S. Baron also said that the new year had begun well despite the many problems with which the tobacco trade has been faced. He declined to prophesy, but he showed that the company is pursuing a cautious policy both by setting aside an exchange reserve and by equipping an additional small-scale factory to meet any emergency. Nearly the whole of the past year's L400,000 profit increase had, he reported, been absorbed in taxation. At the moment the outlook seems reasonably bright on the assumption that public spending power is well maintained. It is certain, however, that the profit margin on orders for the Services is a modest one.