BRISTOL (dpa-AFX) - Imperial Brands Plc (IMB.L), a British tobacco company, said on Tuesday that its previously announced exit from Russia and suspension of operations in Ukraine will impact its guidance for the fiscal 2022.
In addition, the company also announced that it has started talks with a local third party about a transfer of its Russian assets and operations. The moves follow the ongoing Russian invasion in Ukraine and the U.S.-led economic sanctions on Russia.
For the fiscal 2022, the Bristol-headquartered firm now sees a constant currency net revenue growth of around 0 to 1 percent. It also noted that there will be some ongoing costs related to the suspension of its operations in Ukraine.
In November last year, the company had said it expected to deliver net revenue growth in fiscal 2022 at a similar rate to FY21 at constant exchange rates.
However, the company also said its moves will have relatively small impact on its constant currency adjusted operating income as it earns limited income from the two countries.
For the fiscal 2021, Russia and Ukraine contributed around 2 percent of net revenue and 0.5 per cent of adjusted operating profit.
The Group has 1,000 employees in Russia and has also assured that it will continue to pay their salaries until a transfer is met.
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