Bosses at tobacco giant Imperial Brands have cautioned the government over proposals for a 海角视频 smoking ban, saying it could cause “significant unintended consequences”.
Prime Minister Rishi Sunak told the Conservative Party conference on Wednesday (October 4) that he plans to introduce a new law banning tobacco sales to anybody born on or after January 1 2009, and said he would clamp down on the use of disposable vapes.
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Shares in Imperial - which has its headquarters in Bristol - and its competitors slipped in the aftermath of the announcement.
Shortly after Mr Sunak’s speech, a spokesman for Imperial said: “We understand the Government’s desire for new tobacco control measures, because of the health risks associated with smoking.
“But, like any prohibition, the proposal to ban the legal sale of cigarettes over time threatens significant unintended consequences.
“On vaping, we will continue to engage with the Government to create effective policies which prevent youth access and build trust in the category as a potentially less risky alternative for existing adult smokers.”
Meanwhile the company's board said it was “on track” with targets after higher pricing helped to offset lower volume sales of traditional tobacco products.
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The tobacco firm also announced a £1.1bn share buy-back for its investors alongside the update on Thursday (October 5).
The Gauloises and John Player Special maker said it has witnessed constant currency growth in net revenues and adjusted operating profit growth as a result of price rises.
It also recorded revenue growth across all areas of its next generation products business, which includes vaping and heated tobacco products.
The company said it expects net revenue to grow in the “low single-digits”, with foreign exchange rates expected to have a 2% knock on both revenues and profits for the year.
It said its combustibles business, which covers traditional cigarettes and tobacco, has seen a decline in market share in the 海角视频 and Germany, but this was offset by improvements in the US, Spain and Australia.