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Imperial hails low-cost cigarettes
The Bristol-based firm said the UK’s top-selling Lambert & Butler and Richmond economy cigarettes both increased share in a domestic market which slipped an ... IMPERIAL TOBACCO’S best-selling low-cost cigarette brands helped the firm deliver “excellent†UK results yesterday despite the impact of smoking bans and poor weather. The Bristol-based firm said the UK’s top-selling Lambert & Butler and Richmond economy cigarettes both increased share in a domestic market which slipped an estimated 2% to ?47.9bn last year.
Operating profits in the UK grew 11% to ?564m – also helped by cost savings and price increases – but the firm saw an “initial decline†in cigarette volumes after the introduction of bans in England, Wales and Northern Ireland and the summer washout. Imperial said it was “well placed†to build on its UK position but expects annual market declines of between 3% and 4% a year. Overall group pre-tax profits were up 6% to ?1.24bn in the year to September 30, in line with expectations. While Imperial now claims 46.4% of the UK cigarette market, it said cigarette volumes fell by 2% to 22.9 billion over the year.
The company, which also makes Rizla cigarette papers, added that its share of the fine-cut tobacco market had declined slightly to 63.6% although its Golden Virginia brand continues to lead the market. But Imperial’s overall volumes increased 7% after a six-month contribution from acquisition Commonwealth Brands, which makes discount cigarettes for the US market, and a strong performance from leading brands Davidoff, West and JPS.
The company’s most buoyant cigarette markets were in Asia, where the firm boosted operating profits by 17% to ?295m despite currency losses after growing its presence in Taiwan, Laos and Vietnam. The firm is also looking to grow through further buys and said yesterday that its ?11bn acquisition of Spanish cigarette group Altadis should be completed by January.
Altadis, the maker of Gauloises and Fortuna cigarettes as well as Cuban cigars such as Montecristo, will consolidate Imperial’s position as the world’s fourth largest tobacco company behind rivals Philip Morris, British American Tobacco and Japan Tobacco. Imperial demerged from Hanson in 1996 and listed on the London stock market as a FTSE 100 company. Its products are sold in more than 130 countries worldwide. It employs around 14,500 staff and operates 32 manufacturing sites around the world.
Top 10 online cigarettes news on Wednesday, February 8, 2012 09:27:02
- The New South Wales Government says it wants to ban what it calls outdoor cigarette sales tents at big music events across the state.
- Turturro said of Gandolfini-s scenes with Susan Sarandon in their new film, Romance and Cigarettes.
- We-ve seen a growing trend of cigarette companies to go and set up outdoor sales tents at large-scale music events.
- If people want to use that time to have a cigarette then that is up to them.
- four main cigarette manufacturers- British American Tobacco, the owner of Lucky Strike, Philip Morris, the owner of Marlboro, Imperial Tobacco, which owns Superkings and Embassy.
- The two unions announced that in two weeks time the workers from the four Bulgartabak Holding factories would start protests against the raise in excise taxes, as they fear import cigarettes would be sold more than locally produced cigarettes.
- The makers of Marlboros and their parent company have now put in usd5.8 million.
- Lipsman said 246.3 million packs of cigarettes were sold in Iowa last year - a figure he expects to drop to 190.5 million this year and to 186.6 million in 2008.
- But the amount of tobacco in a Black and Mild is more than a cigarette and less than a regular cigar, according to the Health Department.
- On Monday, the national tax collection agency SENIAT announced changes regarding taxes on alcohol and cigarettes in an attempt to reduce their consumption.
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