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(Alliance News) - Imperial Brands PLC on Tuesday reported a rise in first half profit and net revenue growth, as higher cigarette prices boosted the company.
Imperial, the Bristol-based multinational tobacco company, said pre-tax profit in the first half ended March 31 increased by 14% to GBP1.44 billion from GBP1.26 billion the previous year.
The company reported that its operating profit grew by 28% to GBP1.72 billion from GBP1.60 billion the previous year, a growth driven by a rise in cigarette prices which helped to balance costs of the company's exit from Russia last year.
Imperial reported a net revenue increase of 0.3% to GBP15.41 billion from GBP15.36 billion the previous year.
"Businesses performance for the first half of the fiscal year 2023 was resilient, despite temporarily increased volume declines against a strong comparator As expected, this reflects a return to pre-Covid buying patters as well as our decision to exit Russia last year," Chief Executive Stefan Bomhard said.
"In line with our guidance, I can confirm that we are on track to deliver at the full year with an acceleration in constant currency adjusted operating profit growth."
Imperial Brands declared an interim dividend of 43.18 pence per share, a 1.5% increase from 42.54p the previous year.
"I am confident the actions we have taken are creating a stronger, more resilient business capable of driving shareholder returns through a growing dividend and an ongoing share buyback," Bomhard continued.
Looking forward, the company plans to continue to follow its five-year strategic plan and deliver against the guidance.
"We continue to expect low single-digit constant currency tobacco and NGP net revenue growth with constant currency adjusted operating profit growth accelerating to deliver mid-single digit CAGR over the next three years," the company said.
Imperial expects low single-digit constant currency tobacco net revenue growth, but states that the company remains "...confident in our ability to navigate current macro-economic challenges and we are well-placed to generate long-term value for shareholders and all our stakeholders."
Imperial was trading 0.8% lower at 1,857.48 pence on Tuesday morning in London.
By Will Neill, Alliance News reporter
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