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Imperial Brands Beats Annual Adjusted Profit Estimates

British tobacco firm Imperial Brands reported higher full-year revenue and better-than-expected adjusted profit, helped by market share gains.

The maker of Gauloises and Winston cigarettes reported revenue of £30.5 billion ($39.83 billion) for the full year ended on Sept. 30, up from 30.2 billion.

Reported earnings per share fell 2.7% to 143.6p, hurt by a write-off related to the bankruptcy of distributor Palmer & Harvey and foreign exchange rates.

Excluding items, adjusted earnings were 272.2p per share, topping analysts' average estimate of 269.3p, a company-supplied consensus showed.

Outlook

For the year ahead, Imperial said it expects to deliver constant currency revenue growth at, or above, the upper end of a 1% to 4% growth range.

It plans to increase investment in its e-cigarette brand blu by around £100 million in the first half, which will result in a slightly lower adjusted operating profit in the half that will be more than offset in the second half.

It expects its 'next generation' device business to begin contributing to group profit as it exits fiscal year 2019, with margins continuing to build thereafter.

It stood by its medium-term guidance for constant currency earnings per share growth of 4% to 8%.

News by Reuters, edited by Checkout, edited by Donna Ahern. Click subscribe to sign up for the Checkout print edition.

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