Imperial Tobacco Lifts Dividend 16%

Source from:  SHARECAST 04/28/2010

Customers smoking roll-ups rather than branded cigarettes keep earnings momentum strong at Imperial Tobacco in the first half, despite the impact of recession in many of its main European markets. Revenue in the six months to March jumped by 8% to £13.4bn, from £12.4bn, with profits coming in at £974m versus a loss of £184m last time. Operating profit jumped by 4% to £1.19bn, while earnings per share were 16% better at 83.2p. The interim dividend also rises 16% to 24.3p. Cigarette volumes over the half fell by 3.7%, but fine cut tobacco jumped 9.5% as Imperial said customers traded down in Europe. Sales elsewhere were stronger, with its brands Davidoff, Gauloises Blondes and West doing notably well in Africa, the Middle East, Asia and Central Europe. "In the second half we currently expect cigarette volumes to be stable against the second half of 2009, with a slight decline overall for our current financial year," chief executive Gareth Davies said. Enditem