Emerging markets drive tobacco sales

The owner of the Gauloises, Lambert & Butler and Davidoff tobacco brands yesterday hailed growth in emerging markets as annual profits edged higher.

Imperial Tobacco made profits of £2.15 billion in the year to 30 September, up 1 per cent on a year ago and despite a fierce price war and smoking ban hitting profits in Spain.

Profits in Spain tumbled from £268 million to £200m, though chief executive Alison Cooper said the market had now stabilised and prices had recovered. A final dividend of 67p will bring the total for the year to 95.1p, up by 12.8 per cent.