Imperial's Cigarette Volumes Down in First Half

Source from:  Tobacco Reporter 04/28/2010

The Imperial Tobacco Group's volume sales during the six months to the end of March, at 146.9 billion, were down by 3.7 per cent on those of the six months to the end of March 2009. Fine cut sales increased by 9.5 per cent to 13,300 tons, but, overall, including fine-cut sales as cigarette equivalents, sales were down 2.1 per cent to 166.1 billion. On a reported basis, Imperial's revenue was up by eight per cent to £13,370 million, operating profit was up by four per cent to £1,188 million, and profit before tax, at £974 million, was set against a loss of £184 million during the six months to the end of March 2009. On an adjusted basis, tobacco net revenue was up by four per cent to £3,389 million and logistics distribution fees were up by three per cent to £480 million. Operating profit was increased by six per cent to £1,452 million and profit before tax was up by 15 per cent to £1,150 million. "In the first half of 2010 we again demonstrated the resilience of our business and the success of our enhanced sales strategy, achieving further gains with our strategic brands and delivering 16 per cent growth in adjusted earnings per share - an excellent performance in a challenging environment," said chief executive, Gareth Davis. "We made gains with our global cigarette brands Davidoff, Gauloises Blondes and West, with particularly good results in Africa, the Middle East, Asia and Central Europe. This was complemented by a strong performance from our portfolio of regional and local brands. "We are focused on maintaining this growth momentum and are encouraged by the upward trend of our most recent cigarette shares in a number of mature and emerging markets. "We also improved our fine cut tobacco volumes by 9.5 per cent, leveraging our portfolio to capitalise on consumer down-trading in the European Union. "The versatility of our brand and product portfolio and our balanced operating platform will ensure that we maximise growth opportunities and continue to create sustainable value for our shareholders." Davis added that as he approached retirement he wanted to thank all of the company's employees and shareholders for making the past 13 years immensely enjoyable and rewarding. "We have built an excellent management team and in Alison Cooper the Board has appointed a first class executive to lead the successful future development of the business," he said. Enditem