Imperial’s volume down in first half

Imperial Brand’s total tobacco volume during the six months to the end of March, at 133.9 billion stick-equivalents, was down by 3.1 percent on that of the six months to the end of March 2015. Stick-equivalent volume is said to include cigarette, fine-cut tobacco, cigar and snus volumes.

The company benefited from a 6.2 percent increase in volumes through its acquisition of US cigarette brands, but this increase was more than offset by a 3.2 percent decline in Iraq and Syria, an 0.3 percent decline in its market footprint and a 5.8 percent drop in other volumes.

During the same period, the company’s Growth Brand volume was increased by 0.2 percent, from 70.5 billion to 70.7 billion, as a result of growth in its US and ‘Returns’ markets more than offsetting a fall of 12.3 percent from 24.2 billion to 21.3 billion in its ‘Growth’ markets.

Imperial’s tobacco net revenue during the six months to the end of March, at £3,399 million, was increased by 15.4 percent on that of the six months to the end of March 2015, £2,945 million.

Tobacco adjusted operating profit increased by 21.8 percent to £1,577 million, while logistics adjusted operating profit fell by 6.8 percent to £68 million, and total adjusted operating profit increased by 19.8 percent to £1,637 million.

Adjusted earnings per share increased by 21.2 percent to 113.0p, while the interim dividend per share was up by 9.8 percent to 47.0p.

“This was a strong first half performance, as we continued to deliver against our strategic agenda,” said chief executive, Alison Cooper.

“Our quality of growth continues to improve and we achieved excellent results from ITG Brands [US].

“We’re focused on maintaining momentum in the second half and remain on track to meet full year expectations and create significant value for our shareholders.”