Imperial's Cigarette Volumes Down in First Six Months

Source from:  Tobacco Reporter 05/11/2011

Imperial Tobacco's volume sales of cigarettes and fine-cut stick-equivalents during the six months to the end of March, at 164.9 billion, were down by 0.7 per cent on those of the six months to the end of March 2010. Cigarette volumes, at 144.8 billion, were down by 1.4 per cent, while fine-cut stick-equivalent volumes, at 20.1 billion, were up by 4.7 per cent. In the UK, the company's cigarette volumes were down by 9.6 per cent to 9.4 billion and fine-cut volumes were down by 9.1 per cent to 3.0 billion, while in Germany, its cigarette volumes were up by 1.8 per cent to 11.0 billion and its fine-cut volumes were up by 6.8 per cent to 4.7 billion, and in Spain, its cigarette volumes were down by 19.5 per cent to 10.3 billion and its fine-cut sales were up by 71.4 per cent to 1.2 billion. In Imperial's 'rest of EU' region, its cigarette volumes were down by 4.5 per cent to 27.6 billion and its fine-cut volumes were up by 5.5 per cent to 9.6 billion, while in its "Americas" region, the company's cigarette volumes were up by 7.3 per cent to 5.9 billion and its fine-cut volumes were unchanged at 0.3 billion, and in its 'rest of the world' region, its cigarette volumes were up by 2.7 per cent to 80.6 billion and its fine-cut volumes were down by 7.1 per cent to 1.3 billion. Volume sales of the company's global strategic brands, Davidoff, Gauloises Blondes and West, which together account for about 23 per cent of total cigarette volumes, increased by about five per cent. Sales volumes of the premium brand, Davidoff, grew by about nine per cent, volumes of the best-selling Gauloises Blondes brand were up by about five per cent and volumes of West, the international value brand, grew by about one per cent. Volume sales of JPS, which Imperial has developed into an international brand, rose by about 16 per cent. The company reported sales of luxury handmade Cuban cigars up 16 per cent in non-EU markets, and snus volumes up 19 per cent. Imperial's revenue from its tobacco business during the six months to the end of March, at £9,986 million, was up by 5.3 per cent on that of the six months to the end of March last year. Also in respect of the company's tobacco business, net revenue was up 0.8 per cent (2.7 per cent at constant currency) to £3,289 million, operating profit was up by 6.6 per cent to £1,262 million, and adjusted operating profit was up by 2.5 per cent to £1,409 million. Adjusted operating margin was up from 42.1 per cent to 42.8 per cent. "I'm pleased with how we are driving sales growth through our total tobacco portfolio across our international markets," said chief executive, Alison Cooper, in announcing the results. "We've delivered good first half results with tobacco net revenues up three per cent, earnings per share up seven per cent and dividends increasing by 16 per cent. "Spain remains difficult but we made gains elsewhere in the EU and our growth in emerging markets outside the EU was excellent. Our ongoing cost focus continues and disciplined investments are supporting the strong sales we are delivering in consumer growth segments. "Our success translates into further dividend increases going forward and a £500 million annualised share buyback programme which is effective from today. "I'm focused on maintaining our sales growth momentum and delivering a strong performance in the second half. We have the assets, the capabilities and the opportunities to continue to create significant value for our shareholders." Enditem