Imperial’s tobacco-product volumes down
Imperial Tobacco’s volume shipments of cigarettes and other tobacco products calculated as ‘stick equivalents’ during the 12 months to the end of September, at 285.1 billion, were down by 3.1 percent on those of the 12 months to the end of September 2014, 294.4 billion.
In announcing its preliminary results for the year to the end of September, the company said that the underlying fall in shipments, which excludes the impact of its 2014 stock optimization program, was 5.6 percent.
The underlying shipments of its Growth Brands, meanwhile, were up by 7.1 percent, partly because of its brand migration program.
“This was another successful year for Imperial in which we further strengthened the business and improved our quality of growth,” said chief executive, Alison Cooper.
“We generated excellent results from our Growth Brands, outperforming the market with volume and share growth.
“Our footprint was significantly enhanced by the US acquisition and the acquired brands performed well in the final quarter, maintaining share. [In June, a subsidiary of Imperial, ITG brands, acquired for about $7.1 billion from subsidiaries of Reynolds American Inc the KOOL, Salem, Winston and Maverick cigarette brands, along with the blu electronic cigarette brand and other assets.]
“Elsewhere, we maintained positive momentum in many Growth Markets and enhanced our delivery in Returns Markets.
“We realised further savings through our cost optimisation programme, providing funds for investment and improving our margins.
“Cash conversion was up to 97 percent, supporting sustainable returns for shareholders with another 10 percent dividend increase.
“We continue to deliver against our strategic priorities and look forward to building on these good results in the year ahead.”
Imperial reported also that following the US acquisitions, its stand-alone, non-tobacco subsidiary, Fontem Ventures, had focused on integrating the blu team and consolidating its operations in the Netherlands and the US.
‘Sales are currently focused on the USA, UK, Italy and France, four markets that between them account for around 80 percent of the global e-vapour market,’ it said.
‘The blu brand continues to gain traction in the UK and plans are being implemented to strengthen its position in the USA.
‘Fontem also continues to focus on developing and licensing a range of patented technologies.’
