BRISTOL (dpa-AFX) - British tobacco company Imperial Brands Plc (IMB.L, IMBBF.PK, IMBBY.PK) reported Wednesday higher first-half earnings, despite weak revenues. The company also maintained its outlook.
Separately, Imperial Brands announced the appointment of Lukas Paravicini, currently Chief Financial Officer, as Chief Executive Officer, effective October 1.
He succeeds Stefan Bomhard, who has informed the Board of his plan to retire as CEO after five years in the role. Bomhard will continue to serve on the Imperial Brands Board until December 31 and be available until May 2026 to support the transition.
Further, Stefan Murray McGowan, currently Imperial Brands' Chief Strategy and Development Officer, will succeed Paravicini as CFO and become a member of the Board on October 1.
Paravicini has been CFO since May 2021. Before joining Imperial, he served as Chief Operating Officer and Chief Financial Officer for Fonterra, and had a 22-year career in Nestlé.
The Board has agreed that Thérèse Esperdy, who joined as a Non-Executive Director in 2016 and was appointed Chair in 2020, will continue to serve as Chair.
In the first half, Imperial Brands' profit before tax grew to 1.30 billion pounds from last year's 1.14 billion pounds. Earnings per share were 96.7 pence, up 0.7 percent from 96.0 pence a year ago.
Adjusted profit before tax was 1.46 billion pounds, compared to 1.47 billion pounds a year ago. Adjusted earnings per share were 123.9 pence, compared to 120.2 pence in the prior year.
Operating profit dropped 2.5 percent from last year to 1.46 billion pounds, and adjusted operating profit fell 1 percent to 1.65 billion pounds.
Revenue for the period declined 3.1 percent to 14.60 billion pounds from 15.06 billion pounds a year earlier.
Adjusted Tobacco & NGP net revenue was 3.66 billion pounds, up 0.7 percent from last year.
The company said tobacco net revenue was up 2.7 percent, with strong tobacco pricing of 5.9 percent growth, driven by a broad base of markets. Tobacco volumes were down 3.2 percent reflecting wider industry market size declines.
Further, the company announced that interim dividend per share has been increased by 78.5 percent to 80.16 pence, reflecting underlying growth of 4.5 percent and the rephasing of dividend to four equal instalments.
The firm is on track to grow FY25 dividend in line with underlying business performance and progressive dividend policy
Looking ahead, Imperial Brands said it is on track to meet the guidance and expectations for the full year despite a more uncertain global economic environment. At constant currency, the company expects to deliver low-single digit growth tobacco and NGP net revenue and to grow Group adjusted operating profit close to the middle of mid-single-digit range.
The company sees at least high-single-digit earnings per share growth at the full year at constant currency.
Beyond the current fiscal year, the company maintained its medium-term guidance provided in 2030 strategy in March.
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