ECONOMY: Imperial Brands sees its profit drop by 20% because of the vape.

ECONOMY: Imperial Brands sees its profit drop by 20% because of the vape.

Not easy to impose themselves in the vast world of vaping even for the tobacco giants. Indeed, we learn that the British giant Imperial Brands saw its profit fall by 20% in the first half, ended at the end of March, in particular because of the difficulties in vaping and because of costs in sharp rise.


REDUCTION OF ACTIVITY IN THE VAPE AND DISAPPOINTING RESULTS!


Bad news for some tobacco giants. Indeed, net profit shares of Imperial Brands fell to £ 525 million for sales up 1%, a performance the group calls "disappointing».

Operational profit suffered from soaring costs in all directions, from customs duties to administrative costs. Imperial Brands notably declares to have reduced its activities in vaping, its division "new generation products", After"bad returns on investments this year».

The coronavirus pandemic has had little impact on the group so far, but the group predicts "more pronounced effectsIn the second half, particularly because duty-free stores at airports suffered from the collapse in air traffic. However, it expects only an effect of around 2% on earnings per share at constant exchange rates.

«The group is well placed to face the difficulties resulting from the Covid-19 pandemic, thanks to the defensive qualities of tobacco and our financial stability.", Welcomes the group in a press release.

French researchers hypothesized in late April that nicotine could have a protective effect against infection by the new coronavirus. To verify this, preventive and therapeutic trials are underway, in particular with nicotine patches at La Pitié-Salpêtrière hospital in Paris.

To preserve its liquidity, Imperial also cut its dividend by a third.

«Overall the group should be less affected than many others by the pandemic but the fall in the dividend will still be hard for the shareholders", Even if it is an opportunity to repay the heavy debt of the group faster, note William Ryder, analyst at Hargreaves Lansdown.

source : Lefigaro.fr/

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