Imperial Tobacco stick-equivalent volume fell 8 per cent to 140 billion units and operating profit by 17 per cent in the six months ended 31 March as the company bore restructuring costs and experienced weaker markets in Russia, Spain and the United Kingdom.

Growth brand volume, comprised of 10 brands including Davidoff, Gauloises, JPS, Lambert & Butler, outperformed the market but declined 2 billion sticks to 60 billion, the company said in a statement. Imperial plans to save GBP 300 million (EUR 365 million) a year through cost cuts that include shuttering manufacturing plants in Nottingham, UK, and Nantes, France. Imperial also bought back 10.1 million shares for GBP 237 million in the reporting period.
“The actions we’re taking in transitioning the business are strengthening our brands and market footprint”, Imperial said. “Trading conditions are unlikely to materially improve in the coming months, but we’re experienced in growing our business in a demanding environment and remain on track to achieve our targets.”
Gross sales dipped 5 per cent to GBP 12.7 billion and operating profit fell to GBP 999 million from GBP 1.2 billion. The decline in reported operating profit was mainly due to non-cash amortisation and deferred tax charges, Imperial said. Stick-equivalent volume includes fine-cut, cigar and snus volumes measured in number of cigarettes.
In February Imperial’s e-cigarette unit Fontem Ventures introduced the Puritane brand in the UK, where it is sold exclusively by national retailer Boots.