Imperial Brands PLC Trading Statement (1456L)

TIDMIMB

RNS Number : 1456L

Imperial Brands PLC

29 September 2016

IMPERIAL BRANDS PLC

PRE-CLOSE TRADING UPDATE

29 September 2016

Imperial Brands PLC today issues the following trading update ahead of its close period on 1 October 2016.

We confirm we are on track to meet full year expectations at both constant currency and reported exchange rates. We remain in a strong position to generate further returns for shareholders, as we continue to deliver against our strategic agenda.

At current exchange rates, we expect currency translation to benefit full year earnings by c. 4-5%. The full year impact of currency transaction on earnings remains at around 3% for the full year.

We have delivered strong growth in reported tobacco net revenue for the year driven by the US acquisition and the benefit of currency translation. The full year trend for total tobacco volumes and operating profit margin is broadly in line with the first half. Our cost optimisation programme is on track to deliver the targeted savings and cash conversion remains strong.

We have made excellent progress in the US with market share gains in our focus brands, Winston and Kool. We have delivered a strong performance in our Growth Markets as we continue to focus on profitable share opportunities and to benefit from revenue growth in Fontem Ventures. In Returns Markets, our priority has remained on managing share and profit; the benefit from price increases has been offset by a combination of adverse mix, particularly in the UK, EUTPD investment and the conclusion of distribution for Philip Morris International in the UK and Morocco.

The preliminary results for the financial year ended 30 September 2016 will be announced on 8 November 2016.

ENDS

 
 Investor Contacts             Media Contacts 
                 +44 (0)7970                  +44 (0)7967 
 Peter Durman     328 903      Alex Parsons    467 241 
                 +44 (0)117                   +44 (0)7967 
 Matt Sharff      933 7396     Simon Evans     467 684 
 

Cautionary Statement

Certain statements in this announcement constitute or may constitute forward-looking statements. Any statement in this announcement that is not a statement of historical fact including, without limitation, those regarding the Company's future expectations, operations, financial performance, financial condition and business is or may be a forward-looking statement. Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected or implied in any forward-looking statement. These risks and uncertainties include, among other factors, changing economic, financial, business or other market conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described in this announcement. As a result, you are cautioned not to place any reliance on such forward-looking statements. The forward-looking statements reflect knowledge and information available at the date of this announcement and the Company undertakes no obligation to update its view of such risks and uncertainties or to update the forward-looking statements contained herein. Nothing in this announcement should be construed as a profit forecast or profit estimate and no statement in this announcement should be interpreted to mean that the future earnings per share of the Company for current or future financial years will necessarily match or exceed the historical or published earnings per share of the Company. This announcement has been prepared for, and only for the members of the Company, as a body, and no other persons. The Company, its Directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this announcement is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed.

This information is provided by RNS

The company news service from the London Stock Exchange

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September 29, 2016 02:01 ET (06:01 GMT)