Imperial "On Track" for Fiscal Year

Source from:  Tobacco Reporter 02/03/2010

Imperial Tobacco Group PLC confirmed yesterday that the overall performance and financial position of the group for the financial year to Sept. 30 2010 was in line with the board's expectations. "We have made a good start to the year with trading in line with our expectations despite the weak economic environment," said Chief Executive Gareth Davis. "Cigarette volumes have been particularly strong in our Rest of European Union region and we have also maintained our growth momentum in our Rest of the World region with further cigarette share gains in Africa, the Middle East and Asia Pacific. "Davidoff has grown share in its top five markets in our first quarter whilst both West and JPS have also performed well. "In fine cut tobacco we delivered strong volume growth in the UK, Germany and our Rest of European Union region. "We have increased prices across our portfolio in a number of markets since the start of the financial year including in the UK, Spain and France. "In logistics we are showing improved results with the benefit of cost saving initiatives. "Our ongoing focus on working capital and cash generation will enable us to further strengthen our balance sheet by continuing to reduce debt. This has been recognized with Moody's recently changing their credit rating outlook from 'negative' to 'stable.' "Our emphasis on cost optimization and synergy delivery will continue and further advances in productivity will help in offsetting further world leaf inflation. Our focus on sales and the effective use of high levels of cash generation will ensure that we remain on track to create further sustainable shareholder value." Enditem