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Tobacco giant Imperial Brands said it expected slower profit growth in fiscal 2022 after reporting a jump in profit underpinned by lower costs and the sale of its premium cigar division.
For the year ended 30 September 2021, pre-tax profit rose to £3.24 billion from £2.17 billion year-on-year as revenue grew 1.4% to £3.15 billion.
Tobacco revenue was up 1.5%; next generation products revenue was down 3.9% reflecting market exits in Japan and Russia.
The annual dividend per share up 1.0% to 139.08 pence per share, in line with our progressive dividend policy
Looking ahead, the company said it expected results to be second-half weighed and said profit growth in fiscal 2022 would be slower amid an increase in investment spend.
'At constant exchange rates, we expect to deliver net revenue growth at a similar rate to FY21, while adjusted operating profit is expected to grow slightly slower than net revenue, reflecting the step up in investment in line with our five-year strategic plan and after taking into account the non-repeat of the US state litigation settlement costs (net benefit of c. £40m in FY22),' the company said.
'We expect performance will be weighted to the second half reflecting the phasing of investment and the prior year comparator.'