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07-28-2020, 06:20 AM,
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Essentra issues second profit warning as Asian tobacco woes deepen
The ongoing slowdown in the Asian tobacco market has dealt another blow to Essentra's investors after the manufacturer warned for a second time this year that falling cigarette filter sales would hit profits Cheap Cigarettes.

The FTSE 250 filter and packaging makersaid its 2016 operating profits could slump by a fifth compared to last year due to delays within its filter product business, which has been hardhit by tax hikes in the Asian tobacco market.

Shares in the Milton Keynes-based company, previously known as Filtrona, plummeted more than20pc to 398.17pafter the company admitted its operating profit for the year could fall to between £137m and£142m Newport Menthol Cigarettes, from £171.5m last year.

The latest profit warning follows a disastrous mid-year report in which the company downgraded its profit forecast to £155m and £165m and announced that chief executive Colin Day would depart early next year Cigarette Tobacco For Sale Online.

At the time Mr Day blamed the company's woes on the struggle to integrate its healthcare packaging facilities and lower filter sales in India and China.

New tobacco taxes in the two countries have caused a slowdown in orders Online Cigarettes Free Shipping. China's government announced in May that it planned to more than double the consumption tax on cigarettes to 11pc. India hiked its cigarette duty in April for the third time in as many years in a bid to encourage people to stop smoking Cheapest Marlboro Cigarettes Free Shipping.

Since its mid-year update Essentra said revenue from its recentfilter contract wins has been slower than expected to rampup. At the same time the transfer of a line of existing business from the US to Asia has been delayed until early 2017 Buy Cigarettes Online.

In its healthcare packaging business the company has continued to be be dogged by integration issues at three of its facilities in the US and the UK, which are dragging on revenue.

Correcting the company's course in 2017 will fall to incoming chief executive Paul Forman, who is currently the boss of threads and zips manufacturer Coats.
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