The update has been cautiously well received, with pressure on sales being offset by a reasonable rise in revenues. Central Europe has tended to carry the flag in more recent updates, as other regions have fallen foul of tougher economic conditions and increased government taxes on tobacco.
KILLIK & CO
After a poor third quarter (to 30 June), today’s statement represents an improvement. However, the market remains unconvinced of the group’s organic growth aspirations and there is little in the price for success. We remain positive on the stock which is one of the most attractively-rated defensive companies.
MARTIN DEBOO| INVESTEC
We see Imperial’s fourth quarter update as broadly supportive on consensus earnings forecasts at constant foreign exchange rates. However, the much hoped-for volume rebound in the fourth quarter has not materialised and foreign exchange is expected to be a modestly downgrading influence. We would characterise our valuation view on Imperial as cautious relative to the consensus, reflecting our bearishness on the volume outlook.