Smokers have started smoking less since the end of the pandemic, says tobacco giant Imperial Brands
Lambert & Butler owner Imperial Brands said smokers have declined since the end of the pandemic.
The custom has been on the decline for several years in most of the world due to health concerns.
When Covid hit, people had more time to smoke at home, but Imperial said those ‘Covid-related changes in buying patterns’ are now over and demand for cigarettes is falling again.
Stump: When Covid hit, lockdowns left people with more time to smoke at home, but Imperial said demand for cigarettes is falling again
The Bristol company, whose brands also include Winston, Davidoff and Gauloises, said higher prices have offset lower sales. Sales and profit will grow this year, despite remaining flat in the first half of the year.
But ‘uncertainty’ in the US caused sales of its ‘next-generation’ products, such as vapes, to fall in the first half.
It came after the US Food and Drug Administration ended Imperial vaping products last year.
Much of the cigarette industry is pinning its hopes on new products such as heated tobacco and vaping to replace traditional tobacco, which causes cancer.
Derren Nathan, head of equity research at Hargreaves Lansdown, said: ‘Imperial is further expanding its pricing power this year, which will certainly help the company deliver modest revenue and earnings growth.
“But with flat earnings in the first half, even modest growth expectations for the full year mean there’s a lot to deliver in the second half.”