Imperial and other tobacco companies doing business in Spain have cut cigarette prices in response to a weak market. Spain is suffering from high unemployment, particularly among youth. Late last year the Spanish government raised the tax on cigarettes. A smoking ban in public places came into effect 1 January.
British-based Imperial, in a statement, said the impact of the logistics charge on operating profit will be as much as GBP 40 million in the fiscal year ending 30 September.
Imperial’s adjusted operating profit from Spanish operations in fiscal 2010 was GBP 268 million. Company brands sold in Spain include Fortuna and Ducados. (pi)