Imperial Tobacco said improvements in its Spanish operations mean fiscal-year operating profit will be up to GBP 70 million (EUR 79 million) less than expected instead of the originally forecast GBP 110 million.
Imperial in a statement today said it cut the warning on Spanish profits issued 13 June by GBP 40 million due to a July price increase on its products sold and expectations the impact of a one-time charge on its Spanish logistics business will be as much as GBP 20 million instead of up to GBP 40 million.
Last year the group adjusted profit from operations was nearly GBP 3.1 billion.
Total stick equivalent volume in the first nine months of the fiscal year ending 30 Sept. fell 2 per cent, a performance Imperial said would have been unchanged without the Spanish market. Stick equivalent volume combines cigarettes and fine-cut tobacco. Cigarette volume alone fell 3 per cent.
JPS (John Player Special) brand volume increased 15 per cent and the combined volume of Davidoff, Gauloise Blondes and West gained 2 per cent. Snus can volumes rose 26 per cent.
Tobacco revenue rose 2 per cent and was 4 per cent higher without the Spanish market, Imperial said. (ci)