New Tobacco Ban Boxes In Imperial

Source from:  The Times 05/03/2017

Imperial Brands is set to deliver a dismal set of results this week as it braces for the impact of a ban on boxes of 10 cigarettes and small packs of tobacco in British shops.

Imperial, the owner of brands including Lambert & Butler, Gauloises and Golden Virginia, is expected to reveal sales slipped by 4.4% in the six months to the end of March. Underlying earnings could fall by 8%, according to analysts at Citigroup.

The tobacco industry is grappling with tough regulations introduced over recent years, including plain packaging and gruesome health warnings. From May 21, all sales of boxes of 10 and rolling tobacco packs less than 30g will be outlawed in an effort to discourage younger and poorer smokers.

Imperial’s shares have been on a strong run thanks to the fall in the value of sterling, which has lifted its dollar earnings.

Bankers believe the company may be forced into a defensive merger with Japan Tobacco International to offset slowing sales. The two have suffered as rivals, including Philip Morris and British American Tobacco, have developed successful ecigarettes. Enditem