Not easy to establish itself 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 VAPE AND DISAPPOINTING RESULTS!
Bad news for some tobacco giants. Indeed, net profit shares by Imperial Brands fell to 525 million pounds for a turnover up 1%, a performance that the group describes as "disappointing».
The coronavirus pandemic has had only a small impact so far on the group but the latter predicts "more pronounced effectsIn the second half of the year, in particular because duty-free shops at airports suffered from the collapse in air traffic. However, he only expects 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 at the end of April that nicotine could have a protective effect against infection with 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 sliced its dividend by a third.
«Overall, the group should be less affected than many others by the pandemic but the drop in the dividend will still be hard for shareholders", Even if it is an opportunity to repay the heavy debt of the group more quickly, notes William ryder, analyst at Hargreaves Lansdown.
Source : Lefigaro.fr/
