directors report and accounts 2006 - America-Pacific




The profit from the America-Pacific region decreased by £12 million to £424 million, while volumes were down 3 per cent to 44 billion. The increases in profit and volumes from Japan were more than offset by lower contributions from Canada.

Profit in Canada was down £39 million to £280 million, largely due to lower volumes following the growth of illicit product and a shift to low-priced brands, as well as the costs incurred in the move to direct distribution. This was partially offset by the impact of efficiency savings, with the move of production to Mexico, and the stronger Canadian dollar. The premium segment now represents 53 per cent of the total market compared with 57 per cent last year. Imperial Tobacco Canada’s total cigarette market share was down 1 share point to 53 per cent.

In Japan, volume, market share and profit grew strongly despite the decline in the total market. Market share growth accelerated during the second half of the year with strong performances from Kent and Kool. Profit rose significantly due to the increased volumes, the benefit of the manufacturers’ price increase and the absence of one-off costs, which more than offset the impact of exchange.

Click here to view the data for America Pacific