Jump to full article: Times Of London (uk), 2009-07-24
Author: Nick Hasell: Tempus
Intro: If shares in Imperial Tobacco continue to trail those of BAT -- down 10 per cent this year against its larger rival -- there was little to explain that drag in yesterday's third-quarter update.
Trading remains very much on track, the integration of Altadis -- the maker of Gauloises bought for €12 billion two years ago -- is proceeding to plan and working capital savings mean that this year's cashflow should comfortably exceed operating profits.
Most encouragingly, sales volumes in Imperial's biggest Western European markets continue to improve. The UK remains the company's most important territory, and volumes of duty-paid cigarettes were down a modest 1 per cent, against the mid-single digit declines that were previously the norm.
True, the situation is beginning to improve after the introduction of the 2007 smoking ban in England and Wales. But tougher economic times also seem to suit it. Imperial has greater exposure to so-called "value" brands than most of its peers
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