Imperial Brands PLC Trading Statement (3994H)
06 Aprile 2022 - 8:01AM
UK Regulatory
TIDMIMB
RNS Number : 3994H
Imperial Brands PLC
06 April 2022
IMPERIAL BRANDS PLC
Legal Entity Identifier (LEI) No. 549300DFVPOB67JL3A42
6 April 2022
Pre-close trading update
-- Good progress in delivering on our strategic objectives
-- Growth in aggregate market share in top-five priority markets
-- First-half adjusted Group operating profit ahead of last year on constant currency basis
-- Full-year outlook in line with revised guidance issued on 15 March
-- NGP trials progressing well, further update on next steps to
be given at the interim results
-- Cash conversion remains strong supporting year-on-year deleverage
Imperial Brands continues to perform in line with its five-year
strategy launched in 2021. Focused investment in our top-five
combustible markets, which account for around 70 per cent of
adjusted operating profit, has driven an increase in aggregate
market share for those markets. Gains in the US, UK and Australia
more than offset declines in Germany and Spain. These share gains
were achieved while maintaining strong pricing discipline, and
overall tobacco volumes are in line with expectations.
Consumers have responded positively to the pilots of our Pulze
heated tobacco system in Greece and the Czech Republic and an
improved consumer marketing proposition for our blu vapour product
in the US. We are making good progress against our strategic
objective of building a sustainable, consumer-centric Next
Generation Product (NGP) business and we will provide an update on
our next steps at the interim results. First-half NGP revenues are
expected to be slightly ahead of the prior period, driven by growth
in Europe.
We are on track to deliver full-year results in line with our
revised guidance issued on 15 March, with expected full-year net
revenue growth of around 0-1 per cent on a constant currency basis
and adjusted operating profit growth of around 1 per cent.
First-half Group net revenue is expected to be broadly flat on
last year on a constant currency basis, in line with our
expectations. This reflects a weaker tobacco performance in Europe,
which offsets growth in other regions. Europe's performance has
been driven by the return to pre-COVID purchasing patterns as
Northern Europeans resume international travel, as well as price
phasing in some markets. However, price increases during the latter
part of the first half will support a stronger revenue performance
in the second half.
First-half Group adjusted operating profit is expected to grow
by around 2 per cent on a constant currency basis, benefiting
primarily from reduced losses in NGP. As expected, tobacco
performance will be weighted to the second half. First-half tobacco
operating profit will be broadly flat on last year on a constant
currency basis, with increased investment behind our strategy
offsetting the benefit of reduced US litigation costs compared to
last year.
At current exchange rates, translation foreign exchange is
expected to be a c. 2 per cent headwind on first-half earnings per
share and a 1 per cent headwind on full year earnings per
share.
Our adjusted operating cash conversion remains strong on a
12-month basis and we are on track to deliver in line with
expectations at the half and full year. Our first-half leverage
(adjusted net debt to EBITDA) will improve year on year, with
12-month leverage expected to be c. 2.4 times at the half year
(HY21: 2.6x), reflecting the usual seasonal variations in cash
flow. We expect to deliver a further year-on-year improvement in
leverage at the full year.
We continue negotiations with a local third party about an
orderly transfer of our Russian assets and operations as a going
concern. Meanwhile, we also continue to support our Ukrainian
colleagues and their families, including with transport and
accommodation to enable them to escape the areas most severely hit
by conflict, as well as resettlement assistance for those who have
left Ukraine.
The interim results for the six months ended 31 March 2022 will
be announced on 17 May 2022.
ENDS
Notes:
The Group uses 'adjusted' (non-GAAP) measures as we believe they
provide a better comparison between reporting periods. The
definition of our adjusted measures is unchanged from our full-year
results. We also use the term 'constant currency', which removes
the effect of exchange rate movements on the translation of the
results of our overseas operations.
Investor Contacts Media Contacts
+44 (0)7970 328 +44 ( 0)7740 096
Peter Durman 903 Jonathan Oliver 018
+44 (0)7581 052
James King 880
+44 (0)7974 615
Jennifer Ramsey 739
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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April 06, 2022 02:01 ET (06:01 GMT)
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