Proactive Investors - Run By Investors For Investors

Imperial Brands shares jump as it reports ‘significant progress’ in next generation products

Alison Cooper, chief executive of the company, said: “We expect a considerably stronger second half with further share gains and improving price/mix momentum”
cigarettes
The company said it continues to work on next generation products that provide consumers with an attractive alternative to smoking

Imperial Brands PLC (LON:IMB) shares jumped on Wednesday as the company said it continues to make “significant progress” in next generation products although profits and revenues fell.  

The FTSE 100-listed firm said its revenue for the half year ending 31 March 2018 dipped 0.1% to £14.27mln from £14.29mln a year ago, while operating profit fell 7.6% to £833mln from £902mln.

READ: Imperial Brands to sell other tobacco products business in the US

The tobacco giant declared an interim dividend of 56.87p, a 10% increase from 14.30p last year.

Alison Cooper, chief executive of the company, said in a statement: “We expect a considerably stronger second half with further share gains and improving price/mix momentum.”

He added: ”As a result, we expect a stronger tobacco revenue performance in the second half, particularly in Returns and Growth Markets, with more modest growth in the US.”

The company said it continues to work on next generation products that provide consumers with an attractive alternative to smoking.

The tobacco company said: “These new products provide considerable growth opportunities and we have a significant ambition for these products to become a material part of our future revenue and profit growth.”

Imperial said it is progressing opportunities for divestments, initially targeting proceeds of up to £2bn within the next 12-24 months.

“This will further simplify the business, enhance performance and release capital to pay down debt, deliver returns to our shareholders and, where appropriate, invest in our growth agenda," Cooper said.

In lunchtime trading, Imperial shares jumped 4.7% to 2,741.50p. 

View full IMB profile View Profile

Imperial Brands Timeline

Related Articles

beer
June 08 2019
The 14-year-old company wants to expand its business model to include the production and the sale of potentially lucrative cannabis-infused beverages -- and it is willing to pay big bucks to get a foothold

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use