Imperial Brands has reported underlying revenue growth of 4.1% to £8.3bn. Moderating tobacco volume declines of 1.7% were more than offset by strong pricing. Sales of Next Generation Products (NGP)were up 13.7%.
Underlying operating profit increased 4.6% to £4.0bn, in line with previous guidance. Free cash flow of £2.7bn was up 12.9%, helped by a one-off tax repayment.
This financial year Imperial’s expecting free cash flow to be at least £2.2bn, supported by low-single-digit tobacco and double-digit NGP net revenue growth, and a 3-5% increase in underlying operating profit.
The full-year dividend was raised 4.5% to 160.32p per share. As previously guided buybacks this year are set to increase from £1.25bn to £1.45bn.
The shares rose 2.7% in early trading.
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Imperial Brands key facts
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