TOP NEWS: Imperial Brands Disappointed With Annual Trading Performance

(Alliance News) - Imperial Brands PLC on Thursday said trading in financial 2020 has been ...

Alliance News 8 October, 2020 | 9:10AM
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(Alliance News) - Imperial Brands PLC on Thursday said trading in financial 2020 has been disappointing, as it noted a dive in revenue for its Next Generation products.

The FTSE 100-listed tobacco company stated that while its tobacco business performed well in its financial year ended September 30 despite an uncertain and disrupted trading environment, net revenue for its Next Generation products - which includes products such as Imperial Brands' Blu e-cigarette - is expected to be around 30% lower from the year prior.

Imperial said it experienced increased overall demand in its tobacco business as consumers allocated more of their spend to tobacco, resulting in better than expected volumes. It expects tobacco net revenue to increase by around 1% year-on-year at constant currency.

The Bristol-based company added group net revenue is expected to be flat on the GBP31.59 billion recorded for financial 2019, but warned it incurred some additional manufacturing costs caused by the Covid-related restrictions. It also increased its provisions - mainly in respect of stock and debtor positions - and as a result, expects constant currency earnings per share to be down by around 6%.

Adjusted earnings per share for financial 2019 was 273.3 pence and basic earnings per share was 106.0p.

Separately, Imperial Brands said it expects the divestment of its Premium Cigars business to complete on October 19 with the second non-refundable down payment of EUR85.7 million having been received.

The stock was trading 2.4% higher at 1,396.00 pence each on Thursday morning in London.

By Ife Taiwo; ifetaiwo@alliancenews.com

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