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Imperial Tobacco’s Shipments Dropped 23 Billion

Published on June 12th, 2015 00:00

Imperial Tobacco’s volume shipments of cigarettes and other smoking products considered as ‘stick equivalents’ (SE) in the course of the 12 months to the end of September, at 294 billion, dropped by 7% in comparison to 317 billion reported in 2013.

The company claimed that the drop in shipments, which doesn't include the effect of a stock optimization program that decreased trade inventories in numerous markets, appeared to be 4%. And it explained that fundamental shipments of its key cigarette brands have boosted by 7%, pushed by natural growth and brand migrations. In its initial outcomes, released currently, Imperial reported that it had generated substantial advancement in the year to the end of September, employing a stock optimization program, handling its cost base and taking care of its cash flows. ‘Basic income and volume final results eliminate the effect of the stock program and provide a better image of just how properly we executed,’ the company mentioned.  ‘The proportion of net profit from our key cigarette brands have boosted, increasing the quality of our profits and fortifying our sustainability.’

In the meantime, Imperial claimed that in Sweden and Norway it had experienced a ‘positive performance’ from its Skruf brand that was behind ‘another set of solid outcomes’ from its snus business, with share, volume, revenue and profit all increasing. And it claimed that, in the course of the 12 months under analysis, it had joined the Egyptian market where it was focusing on setting up its presence with Davidoff and Gauloises cigarettes. “I can say that this has been a year of considerable results by Imperial,” stated chief executive, Alison Cooper. “We have toughened our key brands and market footprint, enhanced cash conversion to approximately 91 %, decreased financial debt by £1 billion and provided an additional 10 % dividend boost to shareholders.

“Also we have accomplished our stock optimization program and generated more than £60 million of additional savings as a result of our cost optimization application. “We have accomplished what we established to gain, developing a tougher business in the process. “Trading situations are still challenging in numerous territories but the measures we have applied to boost the quality and sustainability of the business have set us in a tougher posture to generate expansion and produce sustainable value for our shareholders.