Imperial Brands: Announced improved earnings for the year

LAST UPDATE 12:17

Imperial Brands announced improved earnings for the year to September 30, mainly due to emergencies, and stressed that it is in a good position to manage inflation.

The British tobacco company posted pre-tax profits of 24 3.24 billion ($ 4.35 billion) in 2021, up from 17 2.17 billion in 2020.

It also announced a 1.4% increase in the group’s adjusted income to 7.59 billion pounds ($ 10.20 billion) in fixed currency, for the year ended September 30.

Adjusted earnings per share stood at 247.1 pence, compared to estimates for 244.5 pence.

This reflects the profits from the sale of the Premium Cigar Division and the lower depreciation and amortization costs.

Adjusted earnings before tax and interest rose 2.1% to 7 3.57 billion, slightly higher than the για 3.56 billion estimate.

The company announced a dividend of 139.08 pence per share for the year, higher than 137.7 pence per share a year ago.

For the year 2022, the company stressed that it is in the right position to manage inflation through its acquisition strategy, high margins and pricing.

In addition, it forecasts a net increase in revenue at a similar rate to that of 2021, while the increase in operating profits is expected to be slightly lower than revenue.

Tobacco industry Imperial Brands has announced that 2022 will be another year of reorganization, following the announcement of higher-than-expected profit growth for use, thanks to higher cigarette prices and lower losses in e-cigarette business.

CEO Stefan Bomhard has been trying to stabilize operations after years of sluggish growth and loss of market share.

It unveiled a five-year restructuring plan in January to bring Imperial back into cigarette sales and focus on five markets that make up three-quarters of its profits.

The company’s chief executive said it was seeing “encouraging progress”, noting the lowest decline in its share of its priority markets, by just 2 basis points from 17 basis points last year.

He also stressed that a more than 50% reduction in losses in next-generation products was helped by exits from markets such as Japan and Russia.

Bomhard, however, stressed that in 2022 there will be further changes in Imperial in order to strengthen the “foundations” of its five-year plan.

This will include further reorganization of internal activities and significant investments in marketing and sales, mainly in the second half of the year.

Higher investments will result in adjusted operating profit increased slightly lower than the increase in net income in the year 2022.

The increase in net income is expected to be similar to that in 2021.

Losses in NGP activities, which amounted to 8 138 million ($ 185.58 million) in 2021, are also expected to be at the same level as in 2022, as the company invests in market tests in countries such as the Czech Republic and Greece.