Imperial Tobacco reports rise in profits
Imperial Tobacco marked its tenth year as a public company today by reporting an 8% rise in full-year profits to £1.17bn (€1.7bn).
The world’s fourth largest tobacco company, maker of brands such as Golden Virginia rolling tobacco, said it gained market shares across all its operating regions.
Worldwide cigarette volumes rose 7% to 186.9 billion in the year to September 30, while revenues when stripping out duty were ahead 1% at £3.16bn (€4.7bn).
The company said it did not expect smoking bans to have a significant long-term effect on the business.
It added: “We believe smokers will continue to choose to smoke regardless of regulations and our view is supported by experiences in other markets.”
In addition to growing volumes, Imperial said it had cut manufacturing costs by 6% over the year.
Among recent measures, Imperial said in July that it would shut its pipe and snuff factory in Liverpool as part of a shake-up of its operations in Europe which will also see a factory axed in Lahr, Germany.
The site in Liverpool, which employs around 140 people, has been producing pipe and snuff tobacco since 1899 and also packages Golden Virginia.
Imperial will transfer its Golden Virginia operations to factories in Nottingham and Mullingar in Ireland.
And chief executive Gareth Davis added today that Imperial would continue its “unrelenting focus on cost and efficiency throughout every part of the business”.
The Bristol-based company currently employs around 14,500 people at 32 manufacturing sites worldwide.
Since listing on the stock market in 1996 Imperial said the value of £100 (€150) invested in the company had grown to almost £800 (€1,200) by this year.
Chairman Derek Bonham said: “The last decade has been a wonderfully exciting time in the long history of Imperial Tobacco.”
