Imperial Tobacco shipping volume fell by 3.1 per cent to 285 billion stick equivalents in the 12 months ended 30 Sept 2015 but operating profit rose 2.4 per cent, the company said.

The underlying volume decline, which excludes the impact of the company’s 2014 stock optimisation programme, was 5.6 per cent.
“Iraq and Syria accounted for around 10bn sticks, over half of our underlying volume decline, which also includes a 2 per cent positive impact from the acquisition in the US, which added 5bn sticks,” Chief Financial Officer, Oliver Tant, said in a presentation of the preliminary results.
Adjusted operating profit was up by 2.4 per cent at GBP 3.05 billion (EUR 4.3 billion) compared to GBP 2.98 billion (EUR 4.18 billion) the previous year. Tobacco net revenue fell 2.6 per cent to GBP 6.3 billion although at constant currency rates, it would have gained 4.3 per cent.
Shipping volume of growth brands, which include Davidoff, Gauloises Blondes, JPS, West, Fine, News, USA Gold and Lambert & Butler, increased by 10.7 per cent (underlying 7.1 per cent) to 145 billion stick equivalents in the fiscal year to Sept 30 2015.
The company says its acquisition of US assets, including cigarette brands Winston, Salem and Kool, in June this year boosted growth. In the US market, tobacco net revenue increased by 39.4 per cent or GBP 200 million, from GBP 507 million to GBP 707 million.
“We generated excellent results from our growth brands, outperforming the market with volume and share growth,” Chief Executive, Alison Cooper, said. “Our footprint was significantly enhanced by the US acquisition and the acquired brands performed well in the final quarter, maintaining share.”