U.S. e-cigarette sales return to positive growth: one-time strong, 6% increase in cartridge replacement, decline in e-liquid sales
This week's news: On April 16, Imperial Tobacco announced its annual performance report to March 30, 2022: The company ended the year to March 30, 2022 with a net income of £7.589 billion, an increase of 1.4% year-on-year, during which the new tobacco business was closed. Net income was 188 million pounds, down 3.9% year-on-year, mainly due to the company's exit from some market sales; ending operating profit was 3.57 billion pounds, a year-on-year increase of 4.8%, mainly due to the reduction of losses in the new tobacco business and the increase in distribution profits.
Build a targeted and sustainable new tobacco business and gather key markets
In terms of heated tobacco, the company conducted pilot sales of Pulze and iD cigarettes in the Czech Republic and Greece, and both received positive responses from trading partners and customers. In 2021, the company's heat-not-burn products have a market share of 9% in the Czech Republic and 12% in Greece. Mainly because heated tobacco has become a well-established category of harm reduction products, the company makes full use of its existing combustible tobacco products Pathway into the store, and follow-up store rollout plans will be developed based on valuable customer observations gained from the pilot program. For vaping, the company began experimenting with revised propositions for its product blu in the United States, including more innovative customer communication and customer support methods. Regionally,
Europe: By March 30, 2022, the new tobacco business achieved net income of 156 million pounds, a year-on-year increase of 28.8%. The company has achieved sales growth of new tobacco products in several markets, in the United Kingdom, France and Italy. Shares remained relatively stable. In terms of heated tobacco, pilots are being carried out in the Czech Republic and Greece. In terms of vaping e-cigarettes, the company's blu brand maintains a relatively stable market share in Germany, the United Kingdom, and Spain;
United States: By March 30, 2022, the net income of the new tobacco business was 156 million pounds, a year-on-year decrease of 15.5%. In less than half a year, the company launched a new pilot to test customers' marketing preferences for the blu brand, including the choice of new packaging and methods of communicating with customers;
Africa, Asia and Oceania: By March 30, 2022, the new tobacco business ended with a net income of 26 million pounds, a year-on-year decrease of 78.3%, mainly due to the company's decision to withdraw from the vaping e-cigarette market in Russia and Japan and Japan's heat-not-burn products market, reflecting the company's more focused sentiment towards the new tobacco business.
Focusing on customers, continue to strengthen investment in the field of new tobacco
The company has made significant progress after implementing strategic transformation in January this year, updating the leadership team, simplifying the organizational structure, improving re-investment efficiency, and introducing stricter performance management to better allocate resource priorities. In 2018, it will further invest in its five priority markets and pilot markets for harm reduction products, and through its focused, customer-led next-generation product strategy, is committed to reducing harm by providing adult smokers with products that are less potentially dangerous. make meaningful contributions. We believe that as the world's tobacco giants shift their research and strategic focus to smoke-free products, the global transformation trend of new tobacco has already taken shape. At the same time, with the gradual advancement of global new tobacco regulatory standards, it will effectively raise the operating threshold and benefit upstream and downstream leading enterprises.
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