BRISTOL (dpa-AFX) - British tobacco company Imperial Brands plc. (IMB.L, IMBBF.PK, IMBBY.PK) Thursday said fiscal year 2020 Group net revenue performance is slightly ahead of guidance, and is expected to be broadly flat on last year at constant currencies. Further, the company expects constant currency earnings per share will be down by around 6 percent, in line with current market expectations.
Full-year tobacco net revenue to increase by around 1 percent at constant currency with strong demand amid the coronavirus pandemic. Meanwhile, Next Generation Products or NGP net revenue is expected to be around 30 percent lower than last year at constant currencies.
In its trading update, the company noted that the tobacco business has continued to perform well despite an uncertain and disrupted trading environment. The company reported increased overall demand against expectations. This has resulted in better than expected volumes, driven by improved volume trends in several key European markets and in the US.
These positive trends have helped to offset relatively weaker market volumes in the duty free channel and in some traditional summer tourist destinations, where reduced travel has impacted demand.
Regarding NGP, the company said trading has been disappointing, albeit in line with its revised expectations with the level of underlying losses reduced in the second half.
Stefan Bomhard, CEO, said, 'I expect to be able to share some initial observations about the business when we publish our preliminary results on 17 November, at which time we will also announce the date of a capital markets event to provide a strategic update in the first quarter of calendar 2021.'
The Company is currently searching for a new Chief Financial Officer, following Oliver Tant's decision to retire.
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