Overall Volumes Down But Fine Cut Sales Up

Source from:  Tobacco Reporter 09/25/2010

The Imperial Tobacco Group expects that its white stick equivalent volumes for the year to the end of this month will be down by about three per cent on those of the previous year. In presenting a trading update earlier today, the group confirmed that its anticipated financial performance and position for the financial year to September 30 remained in line with the Board's expectations. Tobacco net revenues are expected to be up by about three per cent. "Our global strategic cigarette brands continue to perform well with Davidoff and West volumes growing and Gauloises Blondes' performance improving in the second half," the update said. "Cigarette volumes remain in line with the nine-month trends outlined in the 22 July Interim Management Statement. Our fine cut tobacco business continues to perform strongly with volumes expected to be up around six per cent and as a result we expect white stick equivalent volumes to decline around three per cent." Chief executive, Alison Cooper, said the group continued to drive shareholder returns through its enhanced focus on sales, ongoing cost optimisation and the effective use of its cash. "…I am pleased with our financial delivery given the challenging environment in a number of markets this year," she said. "We remain focused on developing our brand and product portfolio across our regions, responding to consumer shifts within our cigarette and other tobacco product portfolio, to maximise our sales potential." Imperial Tobacco expects to release its full year results on November 2. Enditem