Imperial Brands FY profits rise as new product revenues surge

Cigarette and maker Imperial Brands on Tuesday posted a 4.5% rise in full-year adjusted operating profit as revenues from new products such as vapes and nicotine pouches surged by more than a quarter.

Profit for the year to September 30 came in at £3.5bn. On an adjusted basis earnings were up 4.6% to almost £4bn.

The company, which makes Winston cigarettes, vapes and nicotine pouches said it expected to deliver tobacco and new product net revenue growth at low single-digits on a constant currency basis.

New products revenues rose 26%, which helped narrow losses in the division by 43% to £79m.

Imperial also forecast adjusted operating profit growth close to the middle of its mid-single-digit range.

“This will be driven by continued profit growth from our combustible tobacco business and a further reduction in operating losses in our next generation product portfolio,” Imperial said.

Reporting by Frank Prenesti for Sharecast.com