Imperial Tobacco Sees Significant Revenue Decline Due to Russian Market Exit

Nov.16.2022
Imperial Tobacco Sees Significant Revenue Decline Due to Russian Market Exit
Imperial Tobacco suffers significant decline in revenue due to exit from Russian market amid Ukraine conflict.

The profits of Empire Tobacco have seen a significant decline due to the tobacco giant's decision to withdraw from the Russian market amid escalating hostilities in the conflict between Russia and Ukraine, resulting in a major blow to sales.


A cigarette manufacturer based in Bristol, UK, owns multiple popular cigarette brands such as Gauloises, West, and Golden Virginia. The company has disclosed a 14.7% year-on-year decline in revenue and profit, totaling £2.68 billion as of September.


Imperial Tobacco's departure from Russia resulted in a loss of nearly £400 million in revenue for the group, with further impact from the previous year's sale of its premium cigar subsidiary no longer generating income.


In March, the FTSE 100 index company suspended its operations in Russia, including all production at its Volgograd factory, before transferring the business to local investors in the following month.


As a result, the total sales volume of tobacco decreased by 8.4% in the second half of the year compared to the same period in 2021, and declined by 4.7% for the entire year.


The higher prices helped offset the decline in production, but the weakening of the euro against the dollar still resulted in a decrease in total revenue by 240 million pounds to 32.6 billion pounds.


Imperial Tobacco has increased its market share in four out of its five largest traditional cigarette markets, with the majority of its operating profits coming from these markets.


The company reported in the UK that its increase in market share was driven by investments in local "jewellery" brands such as Embassy, which have made progress in areas where tobacco brands are underrepresented.


As part of a five-year strategy led by CEO Stefan Bomhard, increasing market share in its top five cigarette sales regions (United Kingdom, United States, Germany, Spain, and Australia) is a priority.


The plan also calls for streamlining operations, including cost-cutting measures, as well as expanding the sales of "next-generation products (NGPs)" such as heated tobacco and electronic cigarettes.


Although NGPs (Next-Generation Products) still make up only a small portion of Imperial Tobacco's overall trade, their popularity is increasing due to their launch in more regions and government regulations imposing heavy taxes on and strict regulations of traditional cigarette brands.


However, the significant investment required to introduce brands such as Pulze, iD (both heated tobacco products), and the electronic cigarette device Blu 2.0 into new markets resulted in the NGP department losing £87 million in the year.


Bomhard, who was born in Germany, took over the business a month before the start of the COVID-19 pandemic. However, he stated that the Empire was "prepared and ready to achieve the next stage of our five-year strategy.


He added, "As we face a more challenging macroeconomic environment, the extra investments and actions we took during the initial two years of strengthening phase have laid a stronger foundation for us.


We are fully capable of building upon our delivery record in the next three years, increasing returns, and creating sustainable growth that adds value for our shareholders.


Imperial Tobacco announced today that, in addition to the £1 billion share buyback plan announced in October, it is proposing to distribute a final dividend of £467 million to investors in March next year.


The share price of Imperial Tobacco rose to 20.54 pounds, up 0.5% in late morning trading on Tuesday, indicating an approximately 30% increase in value over the past 12 months.


Statement:


This article is compiled from third-party information and is intended only for industry communication and learning.


This article does not represent the views of 2FIRSTS and 2FIRSTS cannot confirm the truthfulness or accuracy of its contents. Its translation is only intended for industry communication and research.


Due to limited translation capabilities, the translated article may not fully convey the original meaning. Please refer to the original article for accuracy.


2FIRSTS maintains complete alignment with the Chinese government regarding any domestic, Hong Kong, Macau, Taiwan, and foreign-related expressions and positions.


The copyright of compiled information belongs to the original media and authors. If there is any infringement, please contact us for deletion.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

Kumulus Vape2026 H1 Revenue Falls 8.3% but Profit Rises 24% as B2B Weakens and Consumer Channels Grow
Kumulus Vape2026 H1 Revenue Falls 8.3% but Profit Rises 24% as B2B Weakens and Consumer Channels Grow
French vaping company Kumulus Vape reported first-half 2026 revenue of €25.5 million, down 8.3% year over year, as its core B2B distribution business fell 11% to €21.6 million. B2C and store-network revenue rose 5.6% and 17.8%, respectively. Commercial margin increased to 26.3% from 21.7%, while net profit rose 24.1% to €0.8 million. The company attributed the profitability improvement to catalog optimization, logistics restructuring and the ramp-up of Labster, its in-house production unit for proprietary brands.
Market
Sep.17 by 2Firsts Perspectives
EU Tobacco Tax Reform Targets November Push as Sweden Holds Nicotine-Pouch Minimum at €20 per Kilogram
EU Tobacco Tax Reform Targets November Push as Sweden Holds Nicotine-Pouch Minimum at €20 per Kilogram
The Irish presidency of the Council of the European Union is using bilateral talks to push the bloc’s Tobacco Taxation Directive toward a political agreement in November. According to Law360, citing an EU official, Sweden is unwilling to accept a minimum excise threshold above €20 per kilogram for nicotine pouches. Council negotiations have already lowered the European Commission’s original proposal, but a May 2026 presidency compromise still set the minimum at 10% of the tax-inclusive retail price or €30 per kilogram in 2028-29, with higher levels later.
Market
Sep.17 by 2Firsts Perspectives
Altria’s USSTC Starts $250 Million Kentucky Expansion, Adding More Than 200 Jobs
Altria’s USSTC Starts $250 Million Kentucky Expansion, Adding More Than 200 Jobs
U.S. Smokeless Tobacco Company, an Altria Group company, has broken ground on an approximately $250 million manufacturing expansion in Hopkinsville, Kentucky. The roughly 270,000-square-foot facility is expected to create more than 200 jobs and absorb processing, manufacturing and packaging operations currently split between Hopkinsville and Nashville, Tennessee. USSTC previously said production at its Nashville facility is expected to wind down by early 2028. The project forms part of Altria’s broader effort to modernize and consolidate its U.S. smokeless tobacco manufacturing network.
Sep.10
JUUL Purchasers Ask Ninth Circuit to Preserve Antitrust Classes in Case Over Altria’s $12.8 Billion Investment
JUUL Purchasers Ask Ninth Circuit to Preserve Antitrust Classes in Case Over Altria’s $12.8 Billion Investment
Private antitrust litigation stemming from Altria's 2018 $12.8 billion investment for a 35% economic interest in JUUL is advancing before the U.S. Court of Appeals for the Ninth Circuit. Direct purchasers, indirect purchasers and indirect resellers of JUUL products filed answering briefs this week seeking to preserve class certifications granted by a California federal court in February. Altria and JUUL argue that individual consumers and large distributors differ too much in purchasing terms to remain in a single direct-purchaser class, while a separate dispute concerns whether California antitrust law can apply to indirect purchasers across 27 jurisdictions. A September trial has been put on hold during the appeal.
Sep.23
JAMA Study: U.S. Vape Directories Fail to Sustainably Curb Unlisted Sales as Product Shifts May Redistribute Brand Share 2Firsts Recommended
JAMA Study: U.S. Vape Directories Fail to Sustainably Curb Unlisted Sales as Product Shifts May Redistribute Brand Share 2Firsts Recommended
A study by CDC Foundation researchers found no sustained decline in e-cigarette sales across Alabama, Oklahoma and Louisiana, the first three U.S. states to implement e-cigarette directory laws. Louisiana initially saw a significant sales decline, followed by a rebound and a persistent reduction in product availability. Sales also shifted from nontobacco-flavored disposables toward prefilled cartridges, with Vuse Alto driving much of the increase in menthol cartridges. By April 2025, unlisted products still accounted for more than half of e-cigarette nicotine sales in all three states.
Sep.18
Major U.S.  Vape Distributor Demand Vape Pays at Least $300,000 for White House Lobbying Amid Enforcement Pressure
Major U.S. Vape Distributor Demand Vape Pays at Least $300,000 for White House Lobbying Amid Enforcement Pressure
New York vape distributor Ecto World, which operates as Demand Vape, hired political consultant Roger Stone to lobby the Executive Office of the President on regulation of vaping and related products while facing state enforcement and multiple lawsuits. Public lobbying disclosures show that Ecto World paid at least $300,000 for the work through June 30, 2026. Separately, New York State announced in March that more than 28,500 pounds of vaping products tied to the company had been seized, while New York City and the state have pursued legal or enforcement actions. Public records do not show that the lobbying directly changed any specific regulatory or enforcement outcome.
Sep.08