Imperial Brands PLC (LSE:IMB) reported strong growth in profits, on broadly unchanged revenue, with growth in traditional cigarette and next generation products (NGP).
The owner of Golden Virginia and Richmond said in the year to 30 September 2023, revenue fell 0.2% to £32.48 billion from £32.55 billion the year before, while operating profit jumped 27% to £3.40 billion from £2.68 billion.
EPS climbed 52% to 252.4p from 165.9p while the dividend was increased 4% to 146.82p from 141.17p.
"Three years into Imperial's transformation, our investments in consumer capabilities, changes to the way we work, and a new performance culture are translating into stronger, more sustainable operational and financial outcomes,” the firm said in a statement.
The company reported an improved combustible tobacco performance with 10 basis points aggregate market share growth in top-five priority markets and strong, broad-based pricing gains.
It reported market share growth in three out of five markets, with gains in the US, Australia and Spain offsetting declines in Germany and the UK.
It also said NGP net revenue climbed 26% as momentum grows in all categories.
Looking ahead, Imperial said in the coming year, it expects to deliver low-single-digit constant currency revenue growth and to grow constant currency adjusted operating profit close to the middle of its mid-single digit range.
Performance will be weighted to the second half of the year driven by the phasing of pricing in the prior year and investments in NGP, it said.
As a result, first-half operating profit is expected to grow at low single digits at constant currency.