UK tobacco group Imperial Tobacco has reported a rise in first-half net profits of 34 per cent on the back of a strong performance in emerging markets.
The company said that net profit for the six months to March 31 was £926 million—up from £689 million the previous year—driven by a particularly strong performance in emerging markets outside of the EU.
Combined volumes of the global cigarette brands Davidoff, Gauloises Blondes and Westwere up five per cent, while JPS cigarette volumes were up 16 per cent. Fine cut tobacco volumes were up five per cent, as were sales of luxury handmade Cuban cigars—by 16 per cent in non-EU markets.
Imperial's strategy is to continue increasing its footprint in markets such as Asia, the Middle East and Eastern Europe.
Commenting, CEO Alison Cooper said:"I'm pleased with how we are driving sales growth through our total tobacco portfolio across our international markets. We've delivered good first half results with tobacco net revenues up three per cent, earnings per share up seven per cent and dividends increasing by 16 per cent.
"Spain remains difficult but we made gains elsewhere in the EU and our growth in emerging markets outside the EU was excellent. Our ongoing cost focus continues and disciplined investments are supporting the strong sales we are delivering in consumer growth segments.”
Cooper concluded: "I'm focused on maintaining our sales growth momentum and delivering a strong performance in the second half. We have the assets, the capabilities and the opportunities to continue to create significant value for our shareholders."
The company said it will now enter into a £500 million per annum share buyback programme, effective immediately.
Based in Bristol, the UK, Imperial Tobacco produces fine cut tobacco, cigars, rolling papers and tubes. The group has 51 manufacturing sites and around 38,000 employees, and is active in over 160 markets.
