Table 4

2009 UK tobacco industry actual* profitability and profits with regulation

Market share (%)42.935.887.394.0
Revenue (£ million)893.0854.8166.5154.92069.2
Profit actually made (£ million)601.0312.083.034.91030.8
Profit rate actually achieved0.6730.3650.4980.2250.498
Profit when capped at 20% of actual revenue (£ million)178.6171.033.331.0413.8
Implied reduction in profits from 2009 rate (£ million)422.4141.049.73.9617.0
Profit when capped at 12% of actual revenue (£ million)107.2102.620.018.6248.3
Implied reduction in profits from 2009 rate (£ million)493.8209.463.016.3782.5
  • Source: Authors’ calculations using various sources as outlined in the text.

  • *Actual profit figures for Imperial, remaining profit figures are estimates as outline earlier in the article.

  • †Total market share does not sum to 100% since we are assuming that the profitability of the companies comprising the remainder of the market would not be affected by the imposition of price caps.

  • BAT, British American Tobacco; JTI, Japan Tobacco International; PMI, Philip Morris International.