Imperial Tobacco warns of profit fall in Spain

 

Imperial Tobacco, the world's fourth-largest cigarette group, said on Monday that due to price cutting in Spain its annual adjusted operating profits from that country could be reduced by up to 110 million pounds.

The British group said price moves in Spain during recent weeks had affected all market players, and it was acting to protect its market position and the long-term sustainability of its Spanish business.

"Based on retail prices as at Friday 10 June, 2011, we currently estimate that for the financial year to 30 September, 2011, adjusted operating profits derived from Spain could reduce by up to 110 million pounds against our previous expectations," the group said in a statement.

Of this amount, up to 40 million pounds represents a one-off non-recurring impact on its logistics business, the group added.

Excluding Spain, the group said the anticipated financial performance and position of the company for the financial year to Sept. 30, 2011, remained in line with its expectations.