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(Alliance News) - Imperial Brands PLC on Tuesday upped its full-year dividend on the back of higher profit, despite reporting flat revenue.
Imperial Brands said in the financial year that ended September 30 it brought in revenue of GBP32.48 billion, edging down 0.2% from GBP32.55 billion a year before. On a net basis, the Bristol-based tobacco company said adjusted revenue rose 2.8% to GBP8.01 billion from GBP7.79 billion, with next-generation products net revenue up 26%.
It reported that strong tobacco pricing helped to mitigate a volume decline of 10%, driven by its Russian exit and weakness in US mass-market cigars.
Pretax profit rose 22% to GBP3.11 billion in the recent year from GBP2.55 billion the year before.
On the back of the positive results, Imperial Brands raised its dividend per share was raised 4.0% to 146.82 pence from 141.17p.
Looking ahead to the coming financial year, it expects to deliver low-single-digit percentage revenue growth, with growth in adjusted operating profit close to the middle of a mid-single-digit percentage range - both at constant currency. It added that it expects performance to be weighted to the second half of the year in financial 2024.
Chief Executive Stefan Bomhard said: "All of this means we are well placed to deliver on our commitment to enhance returns to investors, with increases to both our dividend and buyback programme. Looking ahead, we expect the continuing benefits of our transformation to enable a further acceleration in our adjusted operating profit growth in the final two years of our five-year strategy."
Shares in Imperial Brands were down 0.4% at 1,781.00 pence each in London early Tuesday.
By Sophie Rose, Alliance News senior reporter
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