• June 15, 2024

Volumes down at Imperial

 Volumes down at Imperial

Alison Cooper

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 265.2 billion, were down by 4.1 percent on those of the 12 months to the end of September 2016, 276.5 billion.

The company said that its volume performance had bettered the industry’s, whose volume fell by 4.4 percent.

In announcing its preliminary results for the year to the end of September, the company said that, during the same period, its Growth Brand volume had increased by 5.5 percent to 159.6 billion SE.

Growth Brands were said to account for 60.2 percent of group tobacco volumes and for 47.6 percent of overall tobacco net revenue.

Tobacco net revenue was up by 8.2 percent, from £7,167 million to £7,757 million; tobacco adjusted operating profit was up by 7.0 percent, from £3,360 million to £3595 million; and total adjusted operating profit was up by 6.2 percent, from £3,541 million to £3,761 million.

“This was an important year of progress,” said chief executive, Alison Cooper. “Building on the work we have done to strengthen the brand portfolio, we significantly increased investment behind our key brand equities and have delivered share gains in most of our priority markets.

“Our results benefited from the overall share momentum which supported improved second half net revenue despite a particularly tough industry backdrop.

“As anticipated, whilst the increased investment impacted current year revenue and profit it is strengthening the business to support improved top-line growth going forward from both tobacco and next generation products.

“Our Growth Brands performed well, reinforcing our focus on quality growth, which we will be building on in FY18. We will also be stepping up our activities in next generation products, with new e-vapour launches in new and existing markets and consumer trials of heated tobacco products.

“We have continued to take decisive cost action to mitigate a tough trading environment and to protect our investments. Cash conversion remains strong and this is our ninth consecutive year of 10 percent dividend growth.

“We are well placed to continue to enhance shareholder value by building on the momentum in our tobacco business and realising opportunities in next generation products.”