Bristol-based Imperial Tobacco, the world's fourth largest cigarette company, says its overall anticipated financial performance for the year to September 30, are in line with the board's expectations.
This is a significant improvement in outlook following a price battle in Spain with rival Philip Morris, the maker of Marlboro cigarettes. The company said in July that adjusted operating profits from Spain could fall by £70m this year.
Tobacco net revenues are expected to be up around 2% "with particularly strong performances in our Eastern Europe, Asia-Pacific and other of European Union countries. Stick (cigarette) equivalent volumes are expected to decline around 2%".
Excluding Spain and the impact of a change in timing of a price increase in the UK, tobacco net revenues are expected to rise by around 3% and stick equivalent volumes to decline by less than 1%.
In Spain, recent price increases will benefit our Tobacco and Logistics operations. These benefits will offset the impact of the change in timing of the UK price increase.
