Imperial Tobacco shares bounce back after drop in sales revealed
By By Rob Buckland
Shares in Bristol-based Imperial Tobacco regained some of the ground lost yesterday when the group, the world’s fourth-biggest cigarette maker, revealed a drop in sales.
Imperial, whose brands include Lambert & Butler, West and Gauloises, told shareholders yesterday that global cigarette volumes fell 4.3% in the nine months to June, adding to a 3.7% decline in its first six months.
Falls in the key markets of US, Russia and Spain were partly offset by gains in central Europe.
In the UK Imperial maintained its 45.4% share of the market in which total sales were constant at 44.9billion.
The company said it continued to benefit from growth in the economy segment with its JPS Silver and Windsor Blue brands gaining share.
Chief executive Alison Cooper said: “Overall we are performing well in what remains a challenging operating environment.
“Our focus on driving sales has delivered another strong operational performance across our business in both cigarette and fine cut tobacco. We increased prices in a number of markets and maintained our sales growth momentum in our Rest of World region despite lower than expected volumes in some low margin Eastern European markets.
“Overall we are performing well in what remains a challenging operating environment, highlighting the resilience of our business and the success of our growth strategy. By continuing to leverage our comprehensive brand and product portfolio across our balanced international footprint we are well placed to further build sales and create sustainable value for our shareholders.”
By mid-morning Imperial shares were trading at £18.64, up 11p or 0.59%.
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