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  • British tobacco giant Imperial Brands on Wednesday warned over the impact on earnings of a partial vaping ban in the United States, sending its shares tanking. Imperial warned that full-year revenues would flatten and earnings would be lower than in 2019 after the US Food and Drug Administration (FDA) banned cartridge-based e-cigarettes in flavours other than tobacco or menthol. Shares in Imperial, which makes vaping brand blu as well as traditional cigarettes such as Davidoff, Gauloises and Winston, plunged almost seven percent in London. "Following the US FDA's ban on certain flavours of cartridge-based vapour devices and weaker than expected consumer demand for vapour, we now expect constant currency full-year group net revenue to be at a similar level to last year and adjusted earnings per share to be slightly lower than last year," Imperial said in a statement. In early afternoon deals, Imperial shares were down 6.66 percent to 1,823.20 pence on London's benchmark FTSE 100 index, which stood 0.7 percent higher. The profit-warning came two days after Imperial announced that car boss Stefan Bomhard was replacing long-serving chief executive Alison Cooper. Imperial had already issued a profit warning in late 2019 faced with a backlash against vaping in the United States. The US ban is on cartridges with fruit, mint and candy flavours that are particularly popular with young people. It however exempts large, tank-based rechargeable vaping devices that cater to adults. The World Health Organization last month claimed that electronic cigarettes are harmful to users and bystanders exposed to the fumes, warning they can damage growing foetuses and impact teenagers' brains. Bomhard joins Imperial from premium car services group Inchcape where he was chief executive for five years. bur-rfj/bcp/bmm
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  • Imperial issues new profit-warning after US vaping ban
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