Imperial Tobacco sales are down 5 percent
Staff writer ▼ | May 7, 2015
Imperial Tobacco said volumes of sales are down 5 percent in the last half year, with 2 percent of that decline due to "the deteriorating political and security situation" in Iraq, an Isis stronghold.Article continues below
Imperial saw overall global cigarette volumes decline 5% in the first half of the year to the end of March, but the company's most profitable brands – which include Davidoff and Gauloises Blondes – sold 12% more. Underlying profits, stripping out currency movements, increased by 5% to £1,295 million.
Imperial Tobacco expects US regulators to approve Reynolds and Lorillard's blockbuster $56 billion merger, a deal that will see Imperial snap up around $7 billion worth of assets.
Counterfeit cigarette sales in Vietnam are on the rise and hurting sales, after a tax increase in the country.
Imperial Tobacco's cost cutting plan is on track, with £85 million ($129.45 million) of savings expected this year. ■ What to read next
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