Tobacco group Altadis jumped into a Spanish price war on Wednesday and cut the cost of its cigarettes just a week after it had raised them, warning that the lower revenue would hit its core profit this year.

Altadis said that if the lower prices lasted all year, its EBITDA (earnings before interest, tax, depreciation and amortisation) would fall Euro 170 million (US$ 206 million).
The hit would have been Euro 250 million euros but Altadis said it would cut more advertising costs to limit the damage. (pi)