Imperial Brands posts small rise in annual profits

Cigarette manufacturer Imperial Brands reported a small rise in annual profits as it managed to halve losses from its vaping and other products division.

Underlying adjusted operating profit for the year rose 2.7% to 3.57bn as reported revenue grew 0.7% to £32.7bn. The dividend was lifted 1% to 139.08p a share.

On a pre-tax basis the maker of Gauloises made a pre-tax profit of £3.24bn, up from £2.17bn, reflecting gains on the disposal of the Premium Cigar Division and lower amortisation and impairment costs.

Imperial said it expected to deliver net revenue growth at a similar rate to 2021, while adjusted operating profit is expected to grow slightly slower than net revenue, reflecting increased investment as part of its five-year strategic plan and non-repeat of US state litigation settlement costs.

New generation products losses were reduced by 56.7% to £138m.

“We expect performance will be weighted to the second half reflecting the phasing of investment and the prior year comparator,” Imperial said on Tuesday.