Imperial Tobacco Profit Helped by Altadis

Source from:  SHARECAST 11/11/2009

Imperial Tobacco boosted full-year profit before tax by 52% thanks to the acquisition of Franco-Spanish rival Altadis. Pre-tax profit for the 12 months ended 30 September jumped to ￡945m from ￡621m in 2008 on revenue up 29% to ￡26.52bn, reported the firm, best known for its Lambert & Butler cigarettes. Results for 2009 include a full 12 months' contribution from Altadis, but the 2008 numbers include the Altadis contribution since the acquisition completed on 25 January 2008. Imperial said it had made considerable progress integrating the Gauloises and Gitanes maker, delivering €147m synergies in the current financial year, taking the total to €190m, some €10m ahead of target. "We remain very confident of achieving our previously announced target of euro €400m cumulative synergies by the end of our 2012 financial year and our net revenue synergy target of €60m by 2011," it said. The annual dividend rises 16% to 73p a share, slightly less than some were hoping for. "In the second half of the year, the first period offering a true comparison since the Altadis acquisition, we delivered 5% growth in tobacco net revenues and 7% growth in adjusted profit from operations at constant currency and before synergy benefits," said chief executive Gareth Davis. "The external environment is challenging but our balanced portfolio and geographic reach, combined with our enhanced focus on sales excellence and effective cost and cash management, leaves us well placed to continue to reward our shareholders with sustainable growth." Enditem