Imperial's Six-Month Volume Sales Down

Source from:  Tobacco Reporter 05/02/2012

Imperial Tobacco's cigarette volume sales during the six months to the end of March, at 138.3 billion, were own by 4.5 per cent on those of the six months to the end of March 2011, 144.8 billion. In the UK, sales increased from 9.4 billion during the six months to the end of March 2011 to 9.7 billion during the six months to the end of March 2012, but sales were down in each of Imperial's other reporting areas: from 11.0 billion to 10.7 billion in Germany; from 10.3 billion to 9.3 billion in Spain; from 27.6 billion to 26.1 billion in the Rest of Europe; from 5.9 billion to 4.4 billion in the Americas; and from 80.6 billion to 78.1 billion in the Rest of the World. Comparing the same periods, overall fine-cut volume sales fell by 1.4 per cent from 21.1 billion cigarette equivalents to 20.8 billion. Fine-cut sales grew from 3.0 billion to 3.5 billion in the UK; from 1.3 billion to 1.4 billion in Spain; from 1.2 billion to 1.3 billion in the Rest of the World; and were unchanged at 0.3 billion in the Americas. Sales fell from 4.3 billion to 4.2 billion in Germany; and from 11.0 billion to 10.1 billion in the Rest of the EU. Taken together as stick equivalents, cigarette and fine-cut volume sales during the six months to the end of March, at 159.1 billion, were down by 4.1 per cent on those of the six months to the end of March 2011, 165.9 billion. Stick equivalent sales grew in the UK, from 12.4 billion to 13.2 billion but fell in Imperial's other reporting areas: from 15.3 billion to 14.9 billion in Germany; from 11.6 billion to 10.7 billion in Spain; from 38.6 billion to 36.2 billion in the Rest of the EU; from 6.2 billion to 4.7 billion in the Americas; and from 81.8 billion to 79.4 billion in the Rest of the World. Comparing the two six month periods, Imperial's tobacco net revenue was up by 3.3 per cent to ￡3,388 million, and its tobacco adjusted operating profit was up by 3.3 per cent to ￡1,456 million. Its key strategic brand stick equivalent volumes were increased by five per cent; and its key strategic brand tobacco net revenue was up by 12 per cent. And comparing the three month-periods to the end of March and to the end of March 2011, tobacco net revenue was up by eight per cent and stick equivalent volumes were down by one per cent. In announcing the results, chief executive, Alison Cooper (pictured), said Imperial's focus on realising the potential of its total tobacco portfolio through its sales growth drivers had delivered a good first half performance, with strong second quarter results reflecting the sales momentum the company was generating. "I'm pleased with the ongoing success of our key strategic brands Davidoff, Gauloises Blondes, West and JPS, as well as the recent cigarette and fine cut tobacco share progress we've made in both the EU and emerging markets. "Disciplined investments are supporting our sales ambitions and we'll continue to maximise the many growth opportunities that our unique portfolio offers to create further value for our shareholders." Enditem