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Imperial said revenue growth is expected to be slower than expected this year due to the US "tough" market for vaping and changes in Africa, Asia and Australia.
"Although this is disappointing for the current year, we think NGP [next generation products] provides a significant opportunity to generate additive growth to complement our tobacco business, "said Imperial in a statement.
Imperial has brands such as Lambert & Butler cigarettes, Rizla rolling papers and Golden Virginia tobacco. These are "new generation products," including the Blu-Vap product.
Imperial said, "The environment has deteriorated significantly in the last quarter due to increased regulatory uncertainty, including actions by US states.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In the United States, regulators are attacking Steam in the middle of & nbsp;death reports potentially related to the alternative tobacco. Earlier this month, Donald Trump announced that the & nbsp;The US Food and Drug Administration will ban all flavored vapes& nbsp; and last week, the Center for Disease Control and Prevention & nbsp;advised people to avoid vaping until potential health risks are better understood."data-reactid =" 27 "> In the United States, regulators have put an end to the rumors of deaths potentially linked to tobacco substitution Donald Trump announced this month that the US Food and Drug Administration would ban Every week, the Center for Disease Control and Prevention advised against the formation of vaping agents until the health risks were better understood.
"This has led to a marked slowdown in the growth of the vapors category in recent weeks, with a growing number of wholesalers and retailers who do not order or allow the promotion of vaping products," Imperial said Thursday.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "READ MORE: The cigarette giant behind Lucky Strike cuts 2,300 jobs as the bend goes out of steam"data-reactid =" 29 ">READ MORE: The cigarette giant behind Lucky Strike cuts 2,300 jobs as the bend goes out of steam
Nicholas Hyett, Equity Analyst at the Hargreaves Lansdown Investment Platform, said: "Vaping represents only a small contributor to revenues and profits at the moment. That is why earnings per share for the entire year should be stable, but hopes The e-Vapers segment would have had a strong impact on growth as traditional tobacco declined. "
Imperial Oil is not the only company to have suffered from US steam suppression in recent weeks.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The CEO of Juul, the largest vaping company America, & nbsp;resigned earlier this week"Data-reactid =" 32 "> The CEO of Juul, the largest vaping company in America, resigned earlier this week as the company agreed to stop marketing amidst the pressure exerted on its marketing to adolescents.
<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The tobacco giant Philip Morris (PM) and Altria (MO), which holds 35% of Juul, also & nbsp;ended merger negotiations on Wednesday. Analysts believe that the crackdown has probably helped put an end to the $ 200 billion deal. "Data-reactid =" 33 "> Tobacco giant Philip Morris (PM) and Altria (MO), holding a 35% stake in Juul, also ended the merger talks Analysts said the crackdown was probably a factor in ending the $ 200 billion deal.
"This is not a good time to be a vaping company," said Russ Mold, investment manager at investment dealer AJ Bell. "Political and regulatory pressures are dropping sharply in the sector.
"While the public is slowly moving from smoking to smokeless products, there is a growing negative reaction in other circles, due to concerns over the large number of young vapers and the threats potential for health. "
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