2-7-18 7:10 AM EST | Email Article

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By Dimitrios Kontos 
 

Imperial Brands PLC (IMB.LN) said on Wednesday that full-year revenue growth will be line with its medium-term guidance of 1% to 4%, as it benefits from higher tobacco sales, and the expansion of its new generation of vapor and heated-tobacco products.

Higher revenue will boost adjusted operating profit, the tobacco company said.

However, reported operating profit will be impacted by a 160 million pound ($223 million) write-off due to the administration of U.K. wholesaler Palmer & Harvey last year, as previously reported.

Adjusted operating profit for the year ended Sept. 30 is expected to be GBP3.64 billion, based on 14 analyst forecasts, according to FactSet. Tobacco revenue is forecast to be GBP7.7 billion, based on four analysts forecasts. For the year ended Sept. 30, 2017, Imperial Brands posted an adjusted operating profit of GBP3.76 billion and net tobacco revenue of GBP7.76 billion.

The company 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.

Imperial Brands said it expects full-year adjusted operating profit 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.

Shares at 1154 GMT were up 10 pence, or 0.4%, at 2,739.50 pence.

 

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

 

(END) Dow Jones Newswires

February 07, 2018 07:10 ET (12:10 GMT)

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