Imperial Brands PLC Trading Statement (9298T)
30 March 2021 - 5:00PM
UK Regulatory
TIDMIMB
RNS Number : 9298T
Imperial Brands PLC
30 March 2021
IMPERIAL BRANDS PLC
Legal Entity Identifier (LEI) No. 549300DFVPOB67JL3A42
30 March 2021
Pre-close trading update
-- Good start to the year with trading in line with our expectations
-- Aggregate market share growth in top five priority markets
-- Increased investment in priority markets in line with the new strategy
-- Growth in Group operating profit driven by reduced NGP losses and higher Logistics profit
-- Full year constant currency guidance remains unchanged
.
Our business is performing well and we remain on track to
deliver our full year results in line with the guidance we gave at
our annual results in November last year with low-mid single digit
organic adjusted operating profit growth at constant currency.
First half Group net revenue is expected to grow by at least 1
per cent on an organic, constant currency basis, driven by
continued strong pricing in tobacco, as well as some benefit from
growth in NGP revenues against a weak comparator period.
In tobacco, we have begun to achieve aggregate market share
growth in our five priority markets with gains in US, UK and Spain
more than offsetting declines in Germany and Australia. We are
investing behind the operational levers outlined at our January
2021 Capital Markets Day in each of these priority markets to drive
performance improvements over time. Overall tobacco volumes are in
line with expectations although COVID-19 continues to affect
consumer buying patterns across different channels and markets.
In NGP, our clear focus is to improve performance, returns and
capabilities. Our preparations for market trials in vapour and
heated tobacco later this year are on track.
First half Group adjusted organic operating profit growth is
expected to be least mid-single digit at constant currency,
benefiting primarily from significantly reduced losses in NGP and
increased Logistics profit. Tobacco operating profit has been
impacted by a lower duty windfall in Australia as previously guided
and as we lap the impact of US trade inventories following the
higher wholesaler purchases in March 2020 to meet COVID-19 pantry
loading demand. Full year adjusted Group operating profit will
reflect increased investment consistent with our strategic plans
and is expected to be in line with our guidance for low-mid single
digit organic growth at constant currency .
At current exchange rates, translation foreign exchange is
expected to be broadly neutral on first half earnings per share and
be a c. 2 per cent headwind to full year earnings per share. As
previously announced, the adjusted tax rate is expected to increase
this year to around 23 per cent.
Our 12-month rolling cash conversion remains strong. In line
with previous guidance, the temporary Logista cash benefits in FY20
are expected to unwind resulting in full year adjusted operating
cash conversion in the range of 75-80 per cent.
The interim results for the six months ended 31 March 2021 will
be announced on 18 May 2021.
ENDS
Notes:
To aid comparison of performance between periods, the Group uses
the term 'organic' to exclude the impact of the Premium Cigar
divestment, which completed on 29 October 2020. The organic
performance comparison excludes the contribution of the Premium
Cigar business from both FY20 and FY21 results. The table below
sets out the contribution of the Premium Cigar business to H1 2020
results:
HY20 Premium HY20 organic
Cigars
Volume (bn SE) 114.6 (0.1) 114.5
Tobacco net revenue (GBPm) 3,509 (103) 3,406
Adjusted operating profit
(GBPm) 1,469 (9) 1,460
Share of JV profits (GBPm) 20 (21) (1)
Adjusted profit before
tax (GBPm) 1,279 (30) 1,249
Adjusted earnings (GBPm) 973 (28) 945
Adjusted EPS (p) 103.0 (3.0) 100.0
Investor Contacts Media Contacts
+44 (0)7970 328 +44 (0)7967 467
Peter Durman 903 Alex Parsons 241
+44 (0)7581 052 +44 (0)7967 467
James King 880 Simon Evans 684
Cautionary Statement
Certain statements in this announcement constitute or may
constitute forward-looking statements. Any statement in this
announcement that is not a statement of historical fact including,
without limitation, those regarding the Company's future
expectations, operations, financial performance, financial
condition and business is or may be a forward-looking statement.
Such forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially
from those projected or implied in any forward-looking statement.
These risks and uncertainties include, among other factors,
changing economic, financial, business or other market conditions.
These and other factors could adversely affect the outcome and
financial effects of the plans and events described in this
announcement. As a result, you are cautioned not to place any
reliance on such forward-looking statements. The forward-looking
statements reflect knowledge and information available at the date
of this announcement and the Company undertakes no obligation to
update its view of such risks and uncertainties or to update the
forward-looking statements contained herein. Nothing in this
announcement should be construed as a profit forecast or profit
estimate and no statement in this announcement should be
interpreted to mean that the future earnings per share of the
Company for current or future financial years will necessarily
match or exceed the historical or published earnings per share of
the Company. This announcement has been prepared for, and only for
the members of the Company, as a body, and no other persons. The
Company, its Directors, employees, agents or advisers do not accept
or assume responsibility to any other person to whom this
announcement is shown or into whose hands it may come and any such
responsibility or liability is expressly disclaimed.
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END
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