Imperial Brands makes ‘good progress’ despite weak European tobacco performance
Rizla maker Imperial Brands said it had delivered “good progress” in its strategic objectives this morning despite a weaker tobacco performance in Europe.
In its pre-close trading update, the company said: “We are on track to deliver full-year results in line with our revised guidance issued on 15 March, with expected full-year net revenue growth of around 0-1 per cent on a constant currency basis and adjusted operating profit growth of around 1 per cent.”
The first-half group net revenue is expected to be broadly flat compared to last year, whilst weaker tobacco performance in Europe offset growth in other regions.
Meanwhile, adjusted operating profit is expected to grow by around two per cent.
The cigarette giant said it continues to perform in line with its five-year strategy launched in 2021, with focused investment in its top-five combustible markets, which account for around 70 per cent of adjusted operating profit.
Gains in the US, UK and Australia more than offset declines in Germany and Spain, and the group said the share gains were achieved while maintaining strong pricing discipline, and overall tobacco volumes in line with estimates.
The producer of JPS and Winston cigarettes suspended all operations in Russia at the beginning of March, including production at its factory in Volgograd, as well as sales and marketing activity.
“We continue negotiations with a local third party about an orderly transfer of our Russian assets and operations as a going concern. Meanwhile, we also continue to support our Ukrainian colleagues and their families, including with transport and accommodation to enable them to escape the areas most severely hit by conflict, as well as resettlement assistance for those who have left Ukraine”, the group said this morning.
Shares were up over two per cent this afternoon.