IMPERIAL TOBACCO GROUP PLC Interim Management Statement for the 9 months ended 30 June 2012
Imperial Tobacco Group PLC confirms that the overall financial position and operational performance of the Group for the financial year to 30 September 2012 is in line with the Board's expectations.
The following relates to the nine months to 30 June 2012 unless otherwise stated. Tobacco net revenues exclude the impact of foreign exchange.
Portfolio Gains Driving Positive Sales Momentum
- Tobacco net revenue up 3 per cent reflecting ongoing strong price/mix; stick equivalent volumes declined 3 per cent
- Strong key strategic brand growth continues with net revenues up 13 per cent and combined stick equivalent volumes up 6 per cent
- Excellent emerging market growth in Cuban cigars and significant snus gains
Summarising today's announcement Alison Cooper, Chief Executive, said:
"This good performance builds on the positive sales momentum we're generating across our total tobacco portfolio in both EU and Non-EU markets.
"I'm particularly pleased with the quality of the volume and revenue growth we're achieving with our key strategic brands Davidoff, Gauloises Blondes, West and JPS which now account for almost a third of our total stick equivalent volumes.
"Consistently applying our sales growth drivers to enhance sales across our regions is our priority for the remainder of the year. Challenging conditions persist in some markets but we have a strong record of delivering growth in this environment and remain in a good position to continue maximising value for shareholders."
Overview
We increased tobacco net revenue by three per cent, reflecting the growing contribution from our key strategic brands and our innovation initiatives.
Our total tobacco portfolio is performing well with ongoing price/mix improvements within each of our regions.
We invest the cash we generate in capital investments supporting our sales growth agenda, buying back shares (£122m since May 2012) and increasing dividends, which we intend to grow ahead of the growth in adjusted earnings per share.
We continue to vigorously challenge extreme regulatory proposals such as plain packaging which are not based on credible evidence and will only serve to fuel the illegal trade in tobacco. We will be making a detailed submission to the UK plain packaging consultation and expect the outcome of the court hearing in Australia to be announced later in the year.
