The tobacco company Imperial Brands invests in steam products while customers abandon traditional cigarettes
City & Finance reporter for the Daily Mail
Imperial Brands is planning new investments in its steam products
Imperial Brands is planning new investments in its steam products as customers increasingly relinquish traditional cigarettes.
Based in Bristol, the tobacco company said it will inject an additional £ 100 million into its Blu-Cigarettes product range over the next six months and is also preparing for the launch of a tobacco product in Japan in the first quarter of 2019.
Imperial estimated that the additional funds spent on Blu would impact operating income in the first half of next year, but added that this would more than offset the second half of the year and lead to full-year earnings growth.
Smokers in developed markets such as the UK are increasingly turning to steam. Public Health England estimates that it is 95% safer than smoking conventional cigarettes.
The Chief Executive of Imperial, Alison Cooper, said, "I think as these products get better and better, that's something smokers increasingly need to change."
Total revenues increased slightly by 0.9 per cent to £ 30.5bn from £ 30.2bn in 2017, while pre-tax profit fell 2 per cent to £ 1.8bn.