Business: Carreras, Still a Smokin' hot stock, but minding its Ps and Ls

With his stocky frame, faux hawk and trendy garb, Carreras General Manager Marcus Steele may not readily be perceived as the CEO/Country Manager of a multinational (British-American Tobacco)

But Steele's exterior belies an unflappable demeanour that has served him well, both in the corporate suite and - more to the point - at the highly regarded company's annual stockholder meetings.

on the most recent of these, held at the Pegasus this past Wednesday Steele faced a raft of questions, and charges, covering everything from the Company's dividend payments (among, if not THE highest of the Jamaican listed companies), its accounting procedures and even whether the company was prepared to or at least considering making a play in the au courant medical ganja field.

He successfully fielded them all and with no bristling or other types of visible rancor that have characterized other corporate CEOs when placed on the grill or faced with an objectionable question.

The GM also responded to questions about the continued steep curve in combating illicit cigarette imports (which anecdotally may be as high as one:one with legal smokes), and the expected ratcheting up of Government anti-tobacco legislation as the current Health Minister continues his campaign to curb cigarette consumption (this column has its own views on that, but will reserve judgement for now). The proposed Phase II, yet to be tabled, countenances a near-total ban on promotion of cigarettes and smoking and also on sponsorship by the company.

This latter item has serious implications for the company's vaunted scholarship programme, which last financial year made some 30 scholarships and educational grants available to the tune of some J$3.5m. when asked about this specifically, Steele said no actual dialogue had as yet been pursued, but the company was considering such with both the Minister of Education and his counterpart in Health.

No worries about the health of the company, although profits did dip and, with the post-IMF recession biting in, consumption for the 1st Quarter of 2015 was down. Carreras returned a profit of some J$2.9bn for the prior year. Shareholders were also rewarded (though some still grumbled) with a total dividend payment of J$ 8.09 per stock unit, a handsome return by nay measure and a14% increase over the previous period.

In pursuit of continued profits, the Company intends to "rev up" what began last year as a pilot programme of bike vendors going directly into targeted events in select communities. GM Steele was visibly elated about the success of this initiative, which he said was providing employment while helping Carreras to maximize its Route-to-Market efficiencies.

The forecast then, calls for continued challenges. But Steele and his team have demonstrated that the company characterized by the "black cat" of its popular Craven A brand, has enough intelligence and moxie to create its own luck.