Imperial’s growth in emerging markets

The world’s fourth biggest cigarette maker said adjusted profits rose 2 per cent to £1.5bn in the six months to March 31 after it grew sales volumes in markets such as Africa and the Middle East.

The Bristol-based company said revenues increased 2 per cent to £13.7bn as the group raised prices and increased sales of strategic brands such as Davidoff and West.

But total volumes were down 0.7 per cent to 164.9 billion sticks as the number of smokers in many developed markets remains flat or declines.

In the UK, volumes were down 2 per cent to 54.8 billion stick equivalents as it outperformed the market, which declined by 4 per cent after being impacted by January’s increase in VAT to 20 per cent.

Its share of the UK market was roughly stable at 45 per cent as it grew sales of economy products such as JPS Silver and Windsor Blue.

Imperial’s Golden Virginia Yellow and Gold Leaf brands also showed strong growth as more smokers choose to roll their own cigarettes.

Strong sales in emerging markets meant profits from European countries outside of the EU were up 30 per cent, while its Asia Pacific region saw a 20 per cent uplift and Africa and the Middle East was up 10 per cent.

Its luxury Cuban cigar business, which includes Montecristo and Cohiba, saw total sales rise 2 per cent, while sales outside the EU were up 16 per cent.