Shares in Imperial Tobacco jumped today as it said it continued to outperform in a globally declining cigarette market.
Overall sales fell 1% in the first nine months of the year but growth brands, which include JPS, Davidoff and Gauloises Blondes, upped volumes by 23% and revenues by 7% in the period.
“While conditions are still tough in a number of our markets, our footprint provides balance and we’re generating good results in growth markets,” said chief executive Alison Cooper.
But Imps admitted the Russian market had deteriorated, and cited “the impact of the turbulent situation in the Middle East”.
Cooper stuck with forecasts of modest full-year earnings growth and a 10% increase in the dividend.
Imperial said that the strength of the pound against the dollar and the euro would, if it continued, knock overseas earnings and operating profits by some 5%. The $7 billion (£4 billion) takeover of several key brands in the US is on track to be completed next year.
The shares rose 2% to 2577p.
