Table 3

2010 UK tobacco industry actual profitability* and profits with regulation

Market Share (%)44.335.27.97.695.0
Revenue (£ million)911.0889.7162.4156.32119.4
Profit actually made (£ million)614.0345.081.448.21088.6
Profit rate actually achieved0.6740.3880.5010.3080.514
Profit when capped at 20% of actual revenue (£ million)182.2177.932.531.3423.9
Implied reduction in profits from 2010 level (£ million)431.8167.148.916.9664.7
Profit when capped at 12% of actual revenue (£ million)109.3106.819.518.8254.3
Implied reduction in profits from 2010 level (£ million)504.7238.261.929.4834.2
  • 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.