Imperial Brands warned Thursday that sales growth will be lower than expected in the year ending September 30, following a regulatory crackdown on vaping products in the United States. The company also forecast zero profit growth this year.
Imperial Brands' stock plummeted over 9% in London on Thursday, while shares in rival British American Tobacco shed more than 3%.US regulators are considering whether to ban all flavored e-cigarettes, which some consider particularly attractive to young users, after nine deaths and 530 cases of lung injury were linked to vaping and e-cigarettes. Several states are moving to ban e-cigarettes altogether.
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And that should be a bad thing?