Imperial's Year-End Volume Sales Down

Source from:  Tobacco Reporter 11/02/2011

Imperial Tobacco's volume sales of 'stick equivalents' - cigarettes and fine-cut tobacco - during the 12 months to the end of September at 343.4 billion, were 1.5 per cent down on those of the year to the end of September 2010. Cigarette volumes were down by 2.1 per cent to 302.1 billion while fine-cut volumes in cigarette equivalents were up by 3.8 per cent to 41.3 billion. Regionally, stick equivalent volumes were down by 7.9 per cent to 25.6 billion in the UK, up by 0.3 per cent to 32.9 billion in Germany, down by 13.0 per cent to 23.5 billion in Spain, down by 1.1 per cent to 77.5 billion in the rest of the EU, up by 5.7 per cent to 12.9 billion in the Americas, and up by 0.4 per cent to 171.0 billion in the rest of the world. Cigarette volumes were down by 9.0 per cent to 19.2 billion in the UK, up by 0.9 per cent to 23.4 billion in Germany, down by 17.8 per cent to 20.8 billion in Spain, down by 3.0 per cent to 57.8 billion in the rest of the EU, up by 3.4 per cent to 12.3 billion in the Americas, and up by 0.6 per cent to 168.6 billion in the rest of the world. Fine-cut volumes in cigarette equivalents were down by 4.5 per cent to 6.4 billion in the UK, down by 1.0 per cent to 9.5 billion in Germany, up by 58.8 per cent to 2.7 billion in Spain, up by 4.8 per cent to 19.7 billion in the rest of the EU, up by 100.0 per cent to 0.6 billion in the Americas, and down by 11.1 per cent to 2.4 billion in the rest of the world. In reporting its preliminary results for the 12 months to the end of September, Imperial said that within its key strategic brand portfolio, it grew Davidoff volumes by six per cent, with 'excellent' gains in Russia, Ukraine, Taiwan and Saudi Arabia. 'Gauloises Blondes volumes were up by two per cent reflecting a very strong performance in North Africa, notably Algeria and Morocco. However, the overall performance was held back by sanction compliance in the Middle East,' it said. 'West performed well in new formats in the emerging markets of Eastern Europe and Asia, but overall volumes were down by two per cent, impacted by market weakness in Poland and Turkey. 'We delivered another very good performance with JPS, increasing volumes by 12 per cent, with particular success in the UK, Australia, Portugal and New Zealand.' In commenting on the results, chief executive, Alison Cooper, made particular mention of the overall growth in these key strategic brands. But she said also that the company's "good performance" had reflected the strength of its total tobacco portfolio and its ability to use this "unique asset" to drive sales and profit growth across its international footprint. "We mitigated the impact of difficult conditions in Spain with gains elsewhere in the EU and excellent growth in the emerging markets of Eastern Europe, Africa and the Middle East and Asia Pacific," she said. "Our focus on capitalizing on consumer growth segments continues to be supported by disciplined portfolio and capacity investments. "The strength of our performance has enabled us to grow earnings per share by five per cent and reward our shareholders with a very strong 13 per cent dividend increase. "I'm focused on maintaining our sales momentum and see significant growth opportunities ahead. Our commitment to sales excellence combined with effective cost and cash management will enable us to continue maximizing returns to our shareholders." On a reported basis, Imperial's revenue was up by 3.7 per cent to £29,223 million, operating profit was up by 4.4 per cent to £2,640 million, basic earnings per share were up by 19.4 per cent to 177.3p, and the dividend per share was up by 12.8 per cent to 95.1p. On an adjusted basis, tobacco net revenue was up by 1.8 per cent to £6,913 million, logistics distribution fees were down by 0.4 per cent to £932 million, tobacco operating profit was up by 1.2 per cent to £2,924 million, logistics operating profit was up by 4.0 per cent to £183 million, total operating profit was up by 1.2 per cent to £3,103 million, and earnings per share were up by 5.1 per cent to 188.0p. Enditem