Imperial's Performance In Line With Expectations

Source from:  Tobacco Reporter 07/25/2012

The Imperial Tobacco Group’s stick-equivalent volume fell by three per cent during the nine months ended June 30, according to its interim management statement that was issued today and in which it confirmed that the overall financial position and operational performance of the group for the financial year to September 30, 2012, was in line with the board's expectations. The stick-equivalent volume of the company’s strategic brands was said to have increased by six per cent. Tobacco net revenue was up by three per cent and net revenue from strategic brands was up by 13 per cent. Imperial reported a 10 per cent emerging-market volume growth in luxury Cuban cigars, and snus volumes up by 39 per cent. "This good performance builds on the positive sales momentum we're generating across our total tobacco portfolio in both EU and non-EU markets,” chief executive, Alison Cooper, was quoted as saying. "I'm particularly pleased with the quality of the volume and revenue growth we're achieving with our key strategic brands Davidoff, Gauloises Blondes, West and JPS, which now account for almost a third of our total stick equivalent volumes. "Consistently applying our sales growth drivers to enhance sales across our regions is our priority for the remainder of the year. Challenging conditions persist in some markets but we have a strong record of delivering growth in this environment and remain in a good position to continue maximising value for shareholders." Meanwhile, as part of an overview included in the statement, Imperial said it continued ‘to vigorously challenge extreme regulatory proposals such as plain packaging which are not based on credible evidence and will only serve to fuel the illegal trade in tobacco. We will be making a detailed submission to the UK plain packaging consultation and expect the outcome of the court hearing in Australia to be announced later in the year.’Enditem