Imperial Tobacco's Finance Director retires, profits to fall in first half

Imperial Tobacco announced on Wednesday that its Finance Director is to step down from the company, as it revealed operating profits would decline in the first half.

Imperial Tobacco announced on Wednesday that its Finance Director is to step down from the company, as it revealed operating profits would decline in the first half.

The cigarette and tobacco manufacturer said that long-running Finance Director Bob Dyrbus is to retire from the board until the company can find a replacement.

He has been working for the company for 25 years as a senior executive and has held his position as the head of finance since the company listed in 1996.

Chairman Iain Napier commented: "On behalf of the board and our employees I would like to thank Bob for the huge contribution he's made to our success. As well as taking overall responsibility for the effective financial management and control of the group for many years, Bob's played a key role in expanding our international operations through acquisitions that have created significant value for our shareholders."

The firm also announced that it has appointed Non-Executive Director Mark Williamson, who has been on the board since 2007, as Deputy Chairman.

Imperial gives gloomy outlook

The company said that due to its ongoing investment and European market pressures, first-half adjusted operating profit would be down year-on-year, though full-year guidance still remains unchanged, with profits weighted to the second half.

Meanwhile, the firm also said that its performance in the EU was hit be further declines in the legal market size as illicit trade continues to rise.

For the first quarter, the company reported that stick equivalent volumes had fallen 1.0%. Net revenue had risen 2.0%, with a price-mix improvement of 3.5% in the three months to December 31st, as "positive momentum" in key markets in the Rest of World division offset by declines in EU volumes, the company said.

Chief Executive Alison Cooper said: "The growth momentum in key markets in Africa and the Middle East and Asia-Pacific is being offset by the current adverse market dynamics in Europe, with increasing levels of illicit trade.

"This reinforces the importance of our two focus areas for 2013: further investing behind our key total tobacco assets and geographies; and accelerating our cost optimisation programme, providing funds for investment and mitigation for the full year given the current European environment."

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?
Bitcoin

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?

Dogecoin – a cryptocurrency created as a joke – has risen by more than 9,000% this year alone. Saloni Sardana looks at how something that began as an …
19 Apr 2021
China owns a lot more gold than it’s letting on – and here’s why
Gold

China owns a lot more gold than it’s letting on – and here’s why

In a world awash with money-printing, a currency backed by gold would have great credibility. And China – with designs on the yuan becoming the world’…
21 Apr 2021
Why investment advice could be about to get a lot cheaper
Investment strategy

Why investment advice could be about to get a lot cheaper

Vanguard, the world’s second-biggest asset manager, is launching its own cut-price financial advice service. It’s something the industry badly needs, …
20 Apr 2021