2-7-18 2:56 AM EST | Email Article

By Dimitrios Kontos

 

Imperial Brands PLC (IMB.LN) said Wednesday that it remains on track to meet its net revenue and earnings expectations for fiscal 2018, at constant currency.

The consensus forecast for the company's net tobacco revenue is 7.71 billion pounds ($10.75 billion) and reported pretax profit is forecast by analysts to be GBP1.80 billion, according to FactSet.

Imperial Brands said first-half net revenue is expected to benefit from continued market-share gains in priority markets and improved pricing, and it expects second-half net revenue to be stronger.

Net revenue growth is expected to be in line with medium-term guidance, reflecting growth in tobacco sales and the expansion of the new product line which includes e-vapor, the tobacco company said.

Imperial Brands said it expects full-year adjusted operating profit--excluding a write-off of about GBP160 million for wholesaler Palmer & Harvey, which entered administration in November-- to be weighted more to the second half than last year, when the ratio between the two halves of the year was 46 to 54.

The strengthening of sterling at current rates is expected to result in a headwind on net revenue and adjusted profit of about 3.5% at the half-year and between 2.5% and 3.0% at the full year, Imperial Brands said.

It said cash generation remains strong, underpinning its 10% dividend growth.

 

Write to Dimitrios Kontos at dimitrios.kontos@dowjones.com

 

(END) Dow Jones Newswires

February 07, 2018 02:56 ET (07:56 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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