Britain's Imperial Tobacco, the producer of Richmond, Davidoff and Gauloises cigarettes, stated these days that yearly net revenue boosted 57 %, raised to some extent by a significant cost-cutting push. Income after taxation jumped to £1.42 billion ($2.27 billion, 1.82 billion euros) within the 12 months to September, Imperial reported in its results report. That came in contrast to net revenue of £905 million in the former financial year, when its overall performance was affected by a significant impairment charge.
On the other hand, Imperial's profits dropped by 5.8 % to £26.63 billion, and it informed of a tough environment -- mainly in Russia where the sector deals with taxation boosts and stronger regulation. Yearly cigarette volumes dropped 7% to 294 billion sticks, as a very poor performance in Russia and Turkey eclipsed effectiveness in the United States and Saudi Arabia. "This has been a year of considerable delivery by Imperial," reported chief executive Alison Cooper in the profits release. "We have accomplished our stock optimization programme and gained more than £60 million of additional savings via our cost optimization programme."We have accomplished what we established to gain, assuring a tougher business during this process."
The efficiency drive is going to offer £300 million of savings for each year by 2018. Turning to the perspective, Cooper cautioned: "Trading circumstances keep on being challenging in numerous areas but the steps we have undertaken to strengthen the quality and sustainability of the business have set us in a far more powerful position to generate growth and establish lasting value for our shareholders."
Imperial declared these days that its $7.1-billion offer to obtain global cigarette brands from Reynolds American and Lorillard would convert its US business. The British company had arranged in July to acquire major cigarette brands - including Camel, Pall Mall and Winston, the hot selling-cigarette in the United States included in the suggested $27.4-billion merger of the two US companies.
The brands will be obtained without any cultural legal liabilities, which would stay with the mixed Reynolds American group, Imperial informed. "The acquisition will be debt funded and is controlled by regulatory and shareholder authorization, which we count on to get in the spring of 2015," it added. "This is a crucial strategic investment for the group that will convert our USA operations, broaden our profit stream and generate considerable value for our shareholders."