Imperial Brands’ 1Q volume down

Imperial Brands’ total tobacco volume in stick equivalents during the three months to the end of December, at 69.6 billion, was down by 3.0 percent on that of the three months to the end of December 2014, 71.8 billion.

According to a first-quarter trading statement issued today, ‘volume excluding the acquired US brands declined 9.1 percent, with Iraq and Syria accounting for 4.4 percent of the fall’.

Volumes were said to have been further impacted as the company ‘deprioritised low quality volume in certain markets’.

Growth Brand volumes were up by 0.4 percent, from 35.5 billion to 35.7 billion, though excluding Iraq & Syria they were up by 7.3 percent, supported by investment in consumer initiatives and a successful migration program.

Imperial said its footprint had been significantly enhanced by its acquisitions in the US where ITG Brands had performed strongly. ‘We have been successful with the sell-in of our new retail program, which is supporting new promotional arrangements for Winston and Kool and improved in-store visibility,’ the company said in its statement.

‘We are also encouraged by the improving performance in our mass market cigar business, with the transition to become more consumer and retail focused underway.’

Imperial’s chief executive, Alison Cooper, said that the company had continued to make good progress against its strategic objectives in the first quarter and was well placed to meet full year expectations.

“We are further sharpening our focus on quality revenue growth and have advanced the simplification of our portfolio and prioritisation of profitable volume.

“In the USA, the ITG Brands team has made excellent progress in the quarter successfully executing our retailer and wholesale programs and establishing the foundations for a year of strong delivery.”