Imperial Tobacco Sales Rise, But Volumes Fall

Source from:  Fox Business 07/27/2011

LONDON -(Dow Jones)- Imperial Tobacco Group PLC (IMT.LN) said Tuesday emerging market demand boosted tobacco sales, but the maker of Gauloises Blondes and JPS cigarettes nonetheless recorded a fall in overall volumes. The world's fourth-largest global tobacco group by revenue said it is trading in line with expectations, posting a 2% rise in tobacco sales in the nine months to June 30 on a constant currency basis, or a 4% rise excluding Spain, which has a struggling economy. Still, total stick volumes, or cigarette and fine cut tobacco combined, fell 2% in the same period. "We are well placed to build on our sales growth momentum in the remainder of the year," said Chief Executive Alison Cooper. Imperial is focused on building its position in developing economies such as Eastern Europe, Africa, the Middle East and Asia to offset a slowdown in developed markets where consumers are struggling with tough economic conditions. Smokers in developed markets are switching to low-cost brands in the face of dented discretionary income as governments impose austerity measures such as tax hikes and public spending cuts to rein in borrowing. The Bristol, England-based company has offset soft volumes with price rises which have helped maintain and build margins in markets like Western Europe and the U.S., where volumes are either in long-term decline or at best flat. Imperial shares closed Monday at 2152 pence, valuing the company at GBP21.92 billion. Enditem