Imperial’s stick-equivalent volume down 7 percent over full year

| November 5, 2013

Imperial Tobacco’s stick-equivalent volume sales during the year to the end of September, at 317 billion, were down by 7 percent on those of the year to the end of September 2012. Stick-equivalent sales include sales of cigarettes, and those of fine-cut, cigars and snus converted to cigarette-stick equivalents.

Meanwhile, the company reported that its stick-equivalent Growth-Brand volumes were down by 2 percent to 129 billion.

“Our growth brands account for a significant amount of our volume and revenue generation, and our aim is to increase this over time to further enhance the quality and sustainability of our business,” Imperial reported.

“These brands outperformed the market in the year, with volumes down less than the rate of market declines.

“Seven of our 10 growth brands grew share and on an aggregate basis, we grew the share of growth brands from 5.1 to 5.4 percent and increased net revenue by 2 percent.

“Growth brands now account for 41 percent of our total volumes, up from 39 percent last year, and 39 percent of tobacco net revenues, up from 38 percent last year.”

Imperial said, too, that while it was strengthening the sustainability of its core tobacco business, it was also pursuing opportunities for growth in other areas through its new standalone subsidiary, Fontem Ventures.

“Fontem Ventures has initially been focused on our entry into the fast growing e-vapour sector and will be launching its own products in 2014,” the company said.

“Fontem Ventures has also acquired further e-vapour assets and expertise from Dragonite International, a company founded by one of the pioneers of e-cigarette technologies, which has further enhanced our sector potential.”

Imperial’s tobacco revenue during the year to the end of September, at £20,881 millon, was down from £21,161 million during the year to the end of September 2012. Net revenue was up from £7,005 million to £7,007 million.

Operating profit from tobacco was up from £1,447 million to £1,888 million, while adjusted operating profit was up from £2,989 million to £3,003 million.

“Our focus on driving quality growth and transitioning the business has delivered another year of earnings growth and further strengthened our sustainability,” said Chief Executive Alison Cooper.

“Market conditions remain tough. We remain focused on maximizing our long-term growth potential, and in 2014 our priority is to continue transitioning the business: increasing investment behind our key brands and markets to drive quality growth, delivering our cost optimization program and implementing our stock optimization program.

“A reasonable working assumption for 2014 therefore is modest growth in earnings per share at constant currency, with another strong dividend increase of at least 10 percent.

“Our actions in 2013 and over the coming year will provide us with a strong platform for growth in 2015 and beyond.”

Category: Breaking News

Comments are closed.

Sponsor Ad

Sponsor Ad

Sponsor Ad

Web exclusives

Discussing challenges

Discussing challenges

Tobacco growers convene in Indonesia.

| April 2, 2018
The promise of heated tobacco

The promise of heated tobacco

Peter Nixon, PMI’s U.K. and Ireland MD, praises England’s progressive approach to new technologies.

| February 28, 2018
Celebrating cigars at Puro Sabor

Celebrating cigars at Puro Sabor

Five days of factory tours, farm visits, recreational activities and many, many cigars.

| February 5, 2018
Farmers concerned

Farmers concerned

The ITGA worries about slumping demand for leaf tobacco and a lack of alternative crops

| November 2, 2017
Their fair share

Their fair share

Tobacco growers deserve better

| November 1, 2017
Lease on life

Lease on life

Industry leaders respond to the FDA’s new attitude toward vapor products.

| October 1, 2017
The Vype Dossier

The Vype Dossier

Proving the reduced-risk potential of an e-cigarette

| October 1, 2017

Sponsor Ad

From the leaf lands

Grading system questioned

Grading system questioned

The grading system in Malawi, where yet again leaf tobacco prices are favoring buyers, is said to leave a lot to be desired.

| April 17, 2018
Prices dip to US$0.80 per kg

Prices dip to US$0.80 per kg

Malawi’s tobacco sales season got off to an awful start on Monday with some prices well below a dollar a kg, which far from reflected the work that had gone into producing the leaf.

| April 10, 2018
Prices increased in India

Prices increased in India

The prices paid to flue-cured tobacco growers are up in both Andhra Pradesh, where the selling season has just started, and in Karnataka, where it is about to close.

| April 10, 2018
Flue-cured prices increased

Flue-cured prices increased

By the end of the first nine days of sales on Zimbabwe’s 2018 flue-cured tobacco market, the average grower price was up sharply on that of the 2017 season.

| April 9, 2018
Cry for action on child labor

Cry for action on child labor

Human Rights Watch says that children in Zimbabwe are working under hazardous conditions on tobacco farms to earn money for the necessities of life.

| April 6, 2018
Tariff threats ‘troubling’

Tariff threats ‘troubling’

It is often the cry of businesses and industries that ‘change’ should be warmly embraced because it leads to new opportunities. But change trade tariffs and the reaction is different.

| April 5, 2018

Sponsor Ad

Sponsor Ad

Sponsor Ad