Imperial Tobacco Sees Share Gains in UK, Germany

Source from:  LONDON, Sept 19 (Reuters) 09/24/2007

Britain's Imperial Tobacco Group Plc on Wednesday said its current year trading remained in line with its own expectations helped by cigarette market share gains in its two key markets of the UK and Germany. The world's fourth-biggest cigarette firm agreed in July to buy Franco-Spanish rival Altadis for 12.6 billion euros ($17.62 billion). Imperial said it is now awaiting approval by the Spanish regulator CNMV, which it expects in the next few weeks, and hopes to complete the deal by the end of 2007. The company, which makes Britain's two top-selling cigarette brands Lambert & Butler and Richmond, said it grew its cigarette volumes and profit margins in its second half (April-September) helped by strong performances from Davidoff, West and JPS. The group, which makes nearly 60 percent of its profits from its two core markets of UK and Germany, was making a trading statement towards the end of its financial year on Sept. 30, and ahead of its full-year results on Oct. 30. Imperial said bans on smoking in public places in England, Wales and Northern Ireland in the past six months resulted in an initial fall in cigarette market volumes, but the group expects this impact to diminish over time, reflecting the trend it has seen in other markets hit by smoking bans. In Germany, Imperial said it grew market share although the overall market declined due to increased cross-border flows. The group last gave its UK cigarette market share at 46.4 percent for its first half to end-March 2007, and in Germany at 21.2 percent. Imperial shares were up 0.3 percent at 22.16 pounds by 0825 GMT in a sharply higher London market. They have outperformed the FTSE 100 by 9 percent this year, but underperformed rival British American Tobacco Plc by 6 percent. Enditem