Imperial Brands recently forecasted revenue and profit growth next year led by the second half helped by pricing actions and investments in tobacco alternatives.
The maker of Winston cigarettes, Backwoods cigars and Golden Virginia rolling tobacco reported an adjusted operating profit of £3.89 billion for the year ended 30 September, up from £3.69 billion.
The company said its strong financial performance, three years into a five-year strategy anchored on winning back market share in five key tobacco markets, gave it confidence it could increase its adjusted operating profit by mid-single digits next year and beyond.
"We look forward to building on our growing operational track record to deliver sustainable returns to shareholders," CEO Stefan Bomhard said in a statement.
Low-Single-Digit Revenue Growth
Imperial said next year it anticipates low-single-digit revenue growth, while it expects adjusted operating profit close to the middle of its mid-single digit range.
However, it said performance will be weighted to the second half of the year due to pricing actions and investments in smoking alternatives, such as vapes.
This means adjusted operating profit will likely grow by low single digits in the first half, it continued.
Imperial said an 11% rise in tobacco prices had helped offset volume declines across all of Imperial's key markets.
While its division selling smoking alternatives saw a 26.4% increase in revenue, adjusted losses increased by more than 48% to 135 million pounds due to new product and market launches, which drove higher investment costs.
Imperial raised its annual dividend by 4%, and said its ongoing multi-year share buyback would increase 10% in 2024.