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Gauloises Maker’s Shipments Declined by 7%

Imperial Tobacco’s volume shipments of cigarettes and other smoking products measured as ‘stick equivalents’ (SE) in the course of 12 months to the end of September, at 294 billion, declined by 7 % in comparison to those registered for the same period a year ago.

The company explained that the fundamental drop in shipments, which does not include the effect of a stock optimization strategy that decreased trade inventories in several markets, constituted 4%.

Moreover, it explained that underlying shipments of its key brands increased by 7%, boosted by organic expansion and brand migrations.

In its early outcomes, released these days, Imperial explained that it had generated considerable advancement in the year to the end of September, putting into action a stock optimization strategy, handling its cost base and handling its cash flows.

The stock program, which was today accomplished, had decreased trade inventories in several of the company’s key markets, influencing volumes by about nine billion SE.
Final results had been influenced also by market size declines.
However strong price and cost control projects had moderated a number of these impacts.
‘The percentage of net profit from our key brands has boosted, reviving the quality of our profits and building up our durability.’

At the same time, Imperial revealed that in Sweden and Norway it had experienced a ‘great performance’ from its Skruf brand that was right behind ‘another set of solid results’ from its snus business, with share, volume, profit and income all boosting.

And it revealed that, within the 12 months under assessment, it had joined the Egyptian market where it was focusing on setting up its presence with Davidoff and Gauloises cigarettes.

In July, it had decided to invest $7.1 billion to purchase from US-based Reynolds American some assets that were being sold resulting from the purchase of Lorillard by Reynolds.

“This has been a year of considerable delivery by Imperial,” explained chief executive, Alison Cooper.
“We have strengthened our brands and market presence, advanced cash conversion to about 91 %, decreased debt by £1 billion and brought another 10 % dividend boost to shareholders.
“We have accomplished our stock optimization system and realized about £60 million of additional savings via our cost optimization strategy.

“We have attained what we established to accomplish, setting up a tougher business in the process.
“Trading conditions continue to be challenging in numerous areas but the steps we have undertaken in order to improve the quality and durability of the business have placed us in a tougher position to generate growth and set up lasting value for our shareholders.”


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