Imperial’s full-year volume down

Imperial Brands’ volume shipments of cigarettes and other tobacco products calculated as ‘stick equivalents’ (SE) during the 12 months to the end of September, at 276.5 billion, were down by 3.0 percent on those of the 12 months to the end of September 2015, 285.1 billion.

In announcing its preliminary results for the year to the end of September, the company said that its acquired US cigarette brands had contributed 12 billion SE (FY2015: 5.4 billion SE; FY2016:17.5 billion), or a 4.2 percent increase. However, there had been a 4.4 billion SE (1.5 percent) fall during the first half of the year because of the impact of its performance in Iraq and Syria; an 0.9 percent decrease because of a decline in market footprint; and a 4.8 percent drop in the volume across the rest of the business.

Growth Brand volume, meanwhile, was up by 4.3 percent, from 145.1 billion SE to 151.3 billion SE, partly because of Imperial’s brand migration program.

Tobacco net revenue was up by 9.7 percent, from £6,251 million to £7,167 million; tobacco adjusted operating profit was up by 10.4 percent, from £2,895 million £3,360 million; and total adjusted operating profit was up by 10.4 percent, from £3,053 million to £3,541 million.

“We delivered another strong performance this year with great results from our expanded US business, and we further improved the quality of our growth,” said chief executive, Alison Cooper.

“We grew the dividend by 10 per cent for the eighth consecutive year and remain committed to this level of increase over the medium term.

“Our strategy is delivering and we see scope for significant further shareholder value creation by remaining relentlessly focused on the same four strategic priorities.

“We are today also announcing further investment behind our strategy to support revenue growth over the medium term. This investment will be supported by a new phase of cost optimisation, targeting a further £300 million of annual savings by 2020, at a cost of £750 million.

“We have established an excellent platform for sustainable quality growth, which will continue to provide growing returns for shareholders.”