IMPERIAL Tobacco, which counts brands like JPS and Golden Virginia among its products, yesterday maintained that sales volumes were up by a quarter following the successful addition of Gauloises maker Altadis to the group.
Imperial reported "considerable progress" with the integration of the Franco-Spanish firm, which it acquired for £10 billion last year.
The firm's volumes rose by 25 per cent to 151.5 billion cigarettes in the six months to 31 March, while fine-cu
t tobacco volumes grew 4 per cent to 12,150 tonnes.
Revenues were boosted 54 per cent to £12.4bn by the acquisition of Altadis, which contributed to only two months of last year's interims.
Adjusted profits from operations rose 49 per cent to £1.37bn.
Chief executive Gareth Davis said: "There are undoubtedly challenges as a result of the current economic climate but our enhanced geographic and brand portfolio enables us to look to the future with confidence."
In the UK, Imperial claimed a 45.5 per cent market share, slightly down on a year earlier but showing signs of stabilising following the launch of its new value range JPS Silver in November.
In January, Imperial announced price rises across its UK portfolio, which also includes Lambert & Butler and Richmond.
Investec Securities described Imperial's performance as solid after the half-year figures met market expectations.
Analyst Martin Deboo added: "Imperial is well-positioned against trading down trends but we have minor concerns over modest loss of share in the UK and France."
He is looking for pre-tax profits of £2.25bn this year, against £1.6bn a year earlier.
Shares fell yesterday as Imperial announced changes to its dividend policy, with shareholders now due to get an interim payout approximately one- third of the prior year's full dividend. It said its policy of paying an overall dividend equivalent to 50 per cent of earnings growth was unchanged.
But the company warned it would need to factor in the cash impact of integrating the Altadis business.
The full article contains 339 words and appears in The Scotsman newspaper.
