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Imperial Tobacco says first-half profit rose 6 percent

Imperial Tobacco says first-half profit rose 6 percent

Imperial Tobacco Group PLC said Tuesday first-half profit rose 6 percent as the volume of cigarette sales continued to rise.
The company, whose brands include Davidoff, West and JPS cigarettes, said profit rose to 421 million pounds (euro617 million; US$842 million) in the six months ended March 31, compared with 397 million pounds in the same period a year ago. Revenue rose 1 percent to 1.5 billion pounds (euro2.2 billion; US$3 billion).
Cigarette production was up 5 percent to 90.7 billion.
This month, Imperial completed its acquisition of Commonwealth Brands, the fourth-largest cigarette manufacturer in the United States, for US$1.9 billion (euro1.4 billion). Kentucky-based Commonwealth Brands, maker of discount brands USA Gold and Sonoma, has an estimated 3.7 percent of the US$376 billion (euro276 billion) U.S. market.
Imperial Chief Executive Gareth Davis said the company still hopes the board of rival Altadis SA will recommend Imperial's euro12.03 billion (US$16.4 billion) takeover approach.
"We continue to try and gain access to the business and get into constructive dialogue, so that we can evaluate if there are any significant areas of value that we have missed," said Davis.
Altadis rejected the approach on April 10. The Spanish company, who's brands include Gauloises, Gitanes and Ducados, said Imperial's offer _ up 4.4 percent from a previous approach _ does not "reflect the strategic value of the company, nor the diversity of its unique assets."
Imperial shares were up 0.4 percent at 2185 pence (euro32.00; US$43.61) on the London Stock Exchange.
London-based Imperial, which also makes Lambert & Butler and Embassy cigarettes, sells cigars and cigarettes in more than 130 countries and employs about 14,500 people.
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http://www.imperial-tobacco.com


Updated : 2021-07-24 13:49 GMT+08:00