Imperial Brands Backs Guidance Despite Declining Volumes
By Christian Moess Laursen
Imperial Brands backed its guidance despite pretax profit falling in the first half of fiscal 2024, partly on declining volumes and adverse foreign exchange effects.
The FTSE 100 tobacco group said Wednesday that its pretax profit fell to 1.14 billion pounds ($1.44 billion) in the first fiscal half year to March 31 from GBP1.44 billion a year prior.
Revenue fell to GBP15.06 billion from GBP15.41 billion, mainly on adverse foreign exchange movements and tobacco volumes dropping 6.3%, while operating profit came in at GBP1.49 billion, down from GBP1.53 billion.
Strong tobacco pricing, that rose 8.6%, more than offset volume declines, the company--which houses Davidoff, Gauloises and JPS among its brands--said. Next-generation product revenue rose 17%.
Adjusted operating profit--a company-preferred metric that strips exceptional and one-off items--rose 2.8% to GBP1.67 billion, driven by tobacco and next-generation products, as previously disclosed.
The board declared a dividend of 44.90 pence a share, up from 43.18 pence a year earlier.
The company reiterated that it is confident of meeting full-year expectations of growing net revenue and delivering a step-up in adjusted operating profit growth.
Write to Christian Moess Laursen at christian.moess@wsj.com
(END) Dow Jones Newswires
May 15, 2024 02:40 ET (06:40 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
4 Wide-Moat Stocks to Buy for the Long Term While They’re Undervalued Today
-
Markets Brief: Four Stocks Made Up 80% of the Gains. Can It Last?
-
Is It Time to Ditch Your Money Market Fund for Longer-Term Bonds?
-
What’s Happening In the Markets This Week
-
4 Reasons Why Today’s Stock Market Is Delivering Impressive Performance
-
What Does Nvidia’s Stock Split Mean for Investors?
-
5 Undervalued Stocks to Buy as Their Stories Play Out
-
Markets Brief: Return of the Meme Stocks
-
10 Stocks the Best Fund Managers Have Been Buying
-
GE Aerospace Stock Has Skyrocketed 86%. Is It a Buy?
-
2 Undervalued Dividend Stocks the Best Managers Are Buying
-
Tesla: Shareholder Vote Reduces Key Person Risk
-
After Earnings, Is CrowdStrike Stock a Buy, a Sell, or Fairly Valued?
-
Adobe’s Strong Quarterly Results Drive Share Gains
-
What Does Broadcom’s Stock Split Mean for Investors?
-
5 Ultracheap Stocks to Buy With the Best Returns on Investment