While cigarette and tobacco giant Imperial has noted 'challenging' conditions in some markets, the group has said that trading in the nine months to September 30th has been in line with expectations.
Tobacco net revenue was up 3% during the period on the back of ongoing strong price/mix. However, stick equivalent volumes fell 3%.
The group noted particular strong performance in its key strategic brands with net revenues up 13% and combined stick equivalent volumes up 6%.
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"This good performance builds on the positive sales momentum we're generating across our total tobacco portfolio in both EU and Non-EU markets," said Chief Executive Alison Cooper.
"I'm particularly pleased with the quality of the volume and revenue growth we're achieving with our key strategic brands Davidoff, Gauloises Blondes, West and JPS which now account for almost a third of our total stick equivalent volumes."
In Spain, fine cut tobacco volumes were up 19%, though the environment remains challenging with market stick equivalent volumes down 11%. Outside the EU, Imperial noted that Ukranian volumes were down 11% as it continues to be "impacted by illicit trade". Meanwhile, the USA remains "very competitive" and the group is looking to improve its performance.
"Challenging conditions persist in some markets but we have a strong record of delivering growth in this environment and remain in a good position to continue maximising value for shareholders," Cooper said.
The group said that it will continue to challenge what it calls "extreme regulatory proposals" such as plain packaging "which are not based on credible evidence and will only serve to fuel the illegal trade in tobacco."
BC
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