Imperial Brands Sees Flat 1st Half Profit; On Track to Meet Full-Year Guidance -- Update

By Kyle Morris

Imperial Brands PLC said Thursday that it is on track to meet 2023 guidance, and that first-half adjusted group operating profit should be roughly flat on year on a constant-currency basis.

The tobacco group said that, excluding the impact of its exit from Russia, first-half group net revenue is seen at a similar level to the prior-year period at constant currency, with strong combustible pricing offset by volume declines as the prior period benefited from Covid-19-related changes in buying patterns. It sees a stronger net revenue performance in the second half, driven by normalization of volume trends.

For the full year, the company sees low single-digit constant currency net revenue growth, in line with expectations.

First-half group adjusted operating profit is expected to be at a similar level to last year on a constant currency basis.

For the first half of 2022, revenue was 15.36 billion pounds ($19.18 billion) and adjusted operating profit was GBP1.59 billion.

Aggregate share in its top five markets at the half year is anticipated at a similar level to the prior period. The U.S., Spain and Australia are anticipated to show growing or stable market share, offsetting declines in Germany and the U.K.

First-half next generation products revenue is expected ahead of the prior-year period, driven by strong growth in Europe and offsetting a decline in the U.S. mainly related to uncertainty caused by the marketing denial order for myblu.

Foreign exchange is expected to be an around 6.5% tailwind on first-half earnings per share, and a roughly 2.5%-3.5% tailwind on full-year earnings per share.

Write to Kyle Morris at [e-mail]

(END) Dow Jones Newswires

April 13, 2023 03:18 ET (07:18 GMT)

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