Imperial Tobacco reports rise in profits – 13/11/06

Chief Executive Gareth Davis – Imperial Tobacco “well placed to deliver further organic growth”

UK. Imperial Tobacco reported an increase of +6% in profit from operations in the year to September 30 – to £1,311 million (US$2,500 million) from £1,240 million (US$2,364 million) in the previous 12 months.

The world’s fourth largest international tobacco company said it increased its cigarette volumes by +7% and gained market shares across all its regions, including its two core markets of the UK and Germany. In the ‘duty free/other rest of the world’ category, volume fell slightly to 4.1 billion from 4.4 billion in the last financial year.

Revenues less duty were up +1% at £3,162 million (US$6,029 million), while basic earnings per share rose by +13% to 122.2p and the full-year dividend by +11% to 62p.

Said Imperial Tobacco Group Chief Executive Gareth Davis: “Our premium international cigarette brand Davidoff again increased its global volumes. We were very pleased to secure ownership of the worldwide Davidoff cigarette trademark, which will enable us to accelerate this growth going forward.

“The strength of our broad brand and product portfolio provides us with good representation across all price segments. This was reflected in encouraging volume and market share gains from Davidoff, West, JPS and a number of regional cigarette brands in the rest of western Europe and the rest of the world.

“These robust cigarette performances, combined with our world leading position in other tobacco products and rolling papers, ensure we are well placed to deliver further organic growth.

Davis added: “This year is our tenth anniversary as a public company and during that time we have developed an excellent track record in profit delivery, earnings growth and shareholder returns.

“We remain committed to building on our successes going forward; taking advantage of widening geographic opportunities, investing further in brand development and continuing to buy back shares whilst we seek value creating acquisitions. The business is in great shape and I am confident that we can continue to create sustainable value for our shareholders.”

Preliminary results for the 12 months ended 30 September 2006