Imperial Tobacco’s Key Brands Demonstrate Positive Performance

Imperial Tobacco
Imperial Tobacco not too long ago held its expectancy for minimal revenues per share growth at solid exchange rates in 2013, with an around 10% boost in dividend, even after facing a drop in claimed tobacco net profit in the quarter concluded December 31, 2013.

Imperial explained that its overall volume performance dropped by 5%, largely in step with the industry. In its key brands, profits constituted GBP29 billion, lower from 12% on a documented basis but also boosted 2% on an actual basis. Key brands were improved due to solid performance demonstrated in major markets, Imperial claimed, as John Player Special Tobacco completed effectively in Australia, the UK and Italy, and popular Gauloises cigarettes performed well in the Middle East, compensating lower demand in Morocco.

Imperial’s luxurious Davidoff brand experienced advancement in Greece and share progression in Saudi Arabia compensated by weak market factors especially in Russia. As to the other as much famous West brand, it was also affected by languid market disorders in Russia and Turkey, but demonstrated positive results in Taiwan.

In Imperial’s special brand tobacco, net profit increased 1%, raised by great activities from both its luxury and mass market cigars, even though this was compensated by decreases in fine cut tobacco in the UK and Spain. Net profit of the key tobacco markets increased 3% with more solid progress in Russia, the Middle East and Indochina. For instance, in Russia, market decrease was compensated by robust pricing and product mix, the company explained. In the US, sales volume was affected by market declines, despite the fact that Imperial explained that market share had advanced throughout the quarter and productivity had boosted.

Net profit of the key tobacco markets increased 3% with more solid progress in Russia, the Middle East and Indochina. For instance, in Russia, market decrease was compensated by robust pricing and product mix, the company explained. In the US, sales volume was affected by market declines, despite the fact that Imperial explained that market share had advanced throughout the quarter and productivity had boosted.

The company representative also reported that Imperial was showing great progress with its stock optimization programme, and that it had substantially decreased trade stocks in several its markets, especially in Iraq. “We are paying attention on driving out key brands and focusing on opportunities in our major markets, complements by strength in our returns markets,” stated Chief Executive Alison Cooper at the press conference. “There is one more stock optimization job to be carried out, even though our price optimization programme is on course and will play a role in our investment plans.”

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