Analysis of Revenues
Revenues as Reported
Reynolds American Inc., income statement, revenues
US$ in millions
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
The annual revenue data reveals several noteworthy trends across the five-year span.
- RJR Tobacco Segment
- This segment shows a generally positive trend with a small decline from 2012 (6960 million) to 2013 (6728 million), followed by a slight recovery in 2014 (6767 million). From 2014 onwards, it experienced substantial growth, peaking at 10314 million by 2016. The increase between 2014 and 2016 is significant, indicating strengthened performance or market position in this segment.
- Santa Fe Segment
- The Santa Fe unit exhibits consistent growth each year, starting at 486 million in 2012 and increasing steadily to 973 million in 2016. This represents roughly a doubling over the five-year period, highlighting continuous expansion and increasing contribution to overall revenue.
- American Snuff Segment
- Similar to Santa Fe, the American Snuff segment shows a steady year-over-year increase in revenue, from 681 million in 2012 to 914 million in 2016. While growth is positive, the rate appears somewhat gradual compared to Santa Fe but remains a reliable driver of revenue growth.
- All Other Segment
- The 'All Other' category shows a more variable trend. Revenue rose moderately from 177 million in 2012 to 191 million in 2013 and then experienced a more marked increase to 368 million by 2015, before decreasing slightly to 302 million in 2016. This suggests some fluctuations in these miscellaneous revenue streams, possibly due to changes in smaller business units or operations.
- Consolidated Net Sales
- Aggregate net sales exhibit an initial dip from 8304 million in 2012 to 8236 million in 2013, followed by a modest increase in 2014 (8471 million). After 2014, there is a strong upward trend in consolidated net sales, reaching 12503 million in 2016. This overall growth aligns with the major segments' performance, especially driven by the pronounced increases in RJR Tobacco and Santa Fe.
In summary, the data indicates a period of ramping up revenues after a modest downturn early in the timeline. The strengthened performance of key segments such as RJR Tobacco and Santa Fe significantly contributes to the consolidated net sales growth. The more modest but steady gains in American Snuff complement this positive trajectory. Revenues classified under 'All Other' are more variable but do not substantially detract from the overall upward sales momentum.