Imperial Tobacco share price: Company posts interim management statement

on Feb 12, 2015
Updated: Oct 21, 2019

Imperial Tobacco Group Plc (LON:IMT) today posted its interim management statement for the three months ended December 31. Highlights from the report provided below, with more to follow:

**Overview:**Underlying tobacco volumes for the quarter were down just under 4 per cent, broadly in line with the decline in our market footprint, with our overall market share stable. We grew volumes, net revenues and market share of our Growth Brands, further enhancing the quality of our business. The timing of pricing activity in a number of markets, impact of reduced trading in Iraq and the mix impact of lower sales of mass market cigars in the US ahead of a brand re-launch, resulted in a decline in tobacco net revenue of 1 per cent. Tobacco net revenue was flat in Returns Markets (down 2 per cent in South and up 1 per cent in North) and declined 4 per cent in Growth Markets. The majority of our pricing is now embedded and remains broadly in line with our plans for the full year.

**Strengthening our Portfolio:** Strong performance from Growth Brands with volumes up 11 per cent and net revenue up 15 per cent; Brand migration programme continues to progress well; 10 now completed; Good progress from Specialist Brands with net revenue growth of 5 per cent; Growth and Specialist Brands now up to 60 per cent of reported tobacco net revenue.
**Developing our Footprint:** US acquisition now approved by shareholders; regulatory approval awaited in spring 2015; Share and volume gains in a number of Growth Markets; continued robust performance in Returns Markets; Underlying net revenue impacted by timing of price increases, Iraq and US mass market cigar;

**Cost Optimisation:** Cost optimisation programme on schedule to deliver further incremental savings of £85 million in FY15.
**Capital Discipline:** Capital discipline continues to be a key priority with ongoing focus on strong cash conversion and debt reduction; Dividend growth of at least 10 per cent confirmed;
**Alison Cooper, Chief Executive, said:** “We’ve continued to make good progress against our strategic agenda in the quarter and confirm our outlook for FY15. We delivered another strong performance from our Growth Brands with volume and net revenue up 11 per cent and 15 per cent respectively, supported by the on-going success of our brand migration programme. We continue to focus on our priorities for success in our Growth and Returns Markets and are well advanced with our US integration plans. The US deal received overwhelming support from our shareholders and will further strengthen our platform for growth.”
As of 07:31 GMT, Thursday, 12 February, Imperial Tobacco Group PLC share price is 3,032.00p.

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