Imperial Tobacco looks abroad for growth

A strong performance from Imperial Tobacco's international sales is expected when the company announces interim results next week.

Pre-tax profits of £220 million are expected but are likely to have been dented by a downturn in tourist trade and the cost of product launches.

Earlier this month, the group acquired a 75% interest in Tobaccor, the largest cigarette manufacturer and distributor in Africa.

It is the dominant player in West and Central Africa and Madagascar and with significant local distribution strength. Tobaccor also has a rapidly expanding business in Vietnam . The acquisition will enable Imperial Tobacco to target the key African and Asian markets.

David Liston, of Gerrard stockbrokers, said: "Good volume growth is expected from international operations, following acquisitions and as operational enhancements flow through.

"The UK volumes could be flat, reflecting the general decline in tobacco sales, even though roll-your-own tobacco products are seeing relatively good growth."