Imperial's Volumes Down in Nine Months to June

Source from:  Tobacco Reporter 07/23/2010

The Imperial Tobacco Group's cigarette volumes for the nine months to June were down by 4.3 per cent as a result of market declines in Spain, the US, Russia and Ukraine, partly offset by gains in Central Europe, according to an interim management statement issued earlier today. At the same time, the company's fine cut tobacco volumes increased by 4.1 per cent with "very strong" growth in its "Rest of EU" region and, as a result, overall cigarette equivalent volumes were down by 3.1 per cent. "Our focus on driving sales has delivered another strong operational performance across our business in both cigarette and fine cut tobacco," said chief executive, Alison Cooper. "We increased prices in a number of markets and maintained our sales growth momentum in our Rest of World region despite lower than expected volumes in some low margin Eastern European markets. "Overall we are performing well in what remains a challenging operating environment, highlighting the resilience of our business and the success of our growth strategy. "By continuing to leverage our comprehensive brand and product portfolio across our balanced international footprint we are well placed to further build sales and create sustainable value for our shareholders." As part of its statement, Imperial said it had filed in the UK an appeal with the Competition Appeal Tribunal against the Office of Fair Trading's decision to impose a fine on Imperial for allegedly restricting competition relating to certain promotional arrangements that Imperial had entered into with multiple retailers prior to August 2003. "Imperial Tobacco categorically denies that these promotional arrangements had the purpose or effect of restricting competition," it said. "As yet no date has been fixed for the appeal to be heard." "We oppose all unnecessary and disproportionate regulation of tobacco. Our application for a judicial review of the proposed ban in England of the sale of tobacco products in vending machines in the Health Act has been granted with the case now proceeding to a full hearing later this year." "Our application for a judicial review of the proposed display ban of tobacco products in England under the Health Act is currently under review. There is no credible evidence to support the idea that children start smoking or that adult smokers continue to smoke as a result of the display of tobacco products and if this legislation is implemented it will further fuel the growth in illicit trade." Enditem