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.

Product | JT Launches Ploom AURA Glacier White in Japan, Expanding the Device Ecosystem Through Color and Accessories
Product | JT Launches Ploom AURA Glacier White in Japan, Expanding the Device Ecosystem Through Color and Accessories
Japan Tobacco Inc. (JT) has introduced the Ploom AURA Glacier White heated tobacco device in Japan, adding a new color option to the existing Ploom AURA lineup. The device maintains the existing SMART HEATFLOW technology and HEAT SELECT SYSTEM with four heating modes, while expanding the ecosystem through new accessories including front panels, back covers, a car holder and wireless charging covers. The product entered pre-sale in Japan on June 30, 2026, followed by broader retail availability from July 7.
Aug.03
Russia’s Vape Device Labeling Regime Enters Force: Registration Starts in September, Mandatory Coding in December
Russia’s Vape Device Labeling Regime Enters Force: Registration Starts in September, Mandatory Coding in December
Russia's digital labeling regime for reusable e-cigarettes and similar personal vaping devices entered its first mandatory phase in September 2026. From September 1, manufacturers, importers and other market participants must register with the national Chestny ZNAK tracking system. From December 1, newly manufactured and imported covered devices will be required to carry digital identification codes and be reported as entering circulation. Russia has also issued new operational guidance for imports, marking the transition from a voluntary pilot to phased mandatory implementation.
Sep.15
Product | PMI Japan Expands ZYN by IQOS Strength Portfolio With Strong Series, Increasing Lineup to 12 Products
Product | PMI Japan Expands ZYN by IQOS Strength Portfolio With Strong Series, Increasing Lineup to 12 Products
Philip Morris Japan (PMJ) has expanded the ZYN by IQOS oral tobacco pouch portfolio in Japan with four new ZYN Strong products, adding a third intensity level alongside the existing Low and Medium ranges. The Strong series first entered selected duty-free channels in Japan on July 1, 2026, before expanding to IQOS stores, the ZYN Online Store and selected tobacco retailers from August 18. The expansion increases the Japanese ZYN by IQOS lineup from eight to 12 products.
Aug.20
Philippines Weighs Unified Vape Tax as Lawmakers Back Risk-Based Rates and Government Seeks to Fill ₱66 Billion Revenue Gap
Philippines Weighs Unified Vape Tax as Lawmakers Back Risk-Based Rates and Government Seeks to Fill ₱66 Billion Revenue Gap
Philippine lawmakers are considering an overhaul of the country's vape excise-tax regime to eliminate the wide gap between taxes on nicotine salt and freebase nicotine liquids and reduce incentives for misdeclaration. House Bill 5364, filed by Rep. Rufus Rodriguez and Rep. Maximo Rodriguez Jr., would impose a unified ₱10-per-milliliter tax on vapor products, with 5% annual increases beginning in 2027. Rodriguez says the proposal could generate an average ₱6 billion in annual collections from 2027 through 2030. The debate comes as the Philippine government considers tobacco, vape and other health-tax reforms to help offset around ₱66 billion in revenue expected to be forgone under a proposed tax-relief package.
Aug.18
Gallup Tracks Nicotine Pouch Use for the First Time: 11% of U.S. Adults Smoke, 9% Vape and 4% Use Nicotine Pouches
Gallup Tracks Nicotine Pouch Use for the First Time: 11% of U.S. Adults Smoke, 9% Vape and 4% Use Nicotine Pouches
Gallup’s 2026 Consumption Habits survey tracked nicotine pouch use for the first time. The survey found that 11% of U.S. adults reported smoking cigarettes in the past week, 9% reported vaping, and 4% reported using nicotine pouches. Cigarette smoking remained near Gallup’s long-term low, while adult vaping rates stayed relatively stable in recent years.
Market
Aug.25 by 2Firsts Perspectives
Product | R.J. Reynolds Launches Four Flavored Vuse Pro Pods for Vuse Alto Devices in U.S.
Product | R.J. Reynolds Launches Four Flavored Vuse Pro Pods for Vuse Alto Devices in U.S.
R.J. Reynolds Vapor Company has introduced Vuse Pro prefilled pods in Peach, Berry, Watermelon and Fresh Mint in selected U.S. states. Vuse’s U.S. website says the pods are intended for use with existing Vuse Alto devices. Each contains 2.0 mL of e-liquid at 5.0% nicotine by weight, uses nicotine salts and is offered in two- and four-pod packs. Reynolds said the rollout includes mandatory ID scanning for every purchase, purchase limits, stronger retailer-accountability requirements and strict age-restricted marketing standards. The four pods have not received marketing authorization from the U.S. Food and Drug Administration.
Sep.10