Imperial Brand’s underlying revenue grew by 1.8% in the first half to £3.7bn. Tobacco sales were up 1.5% with price rises outpacing volume declines. Next Generation Products (NGP) revenue grew 7.5%.
Underlying operating profit was up just 0.6% to £1.6bn, held back by a lower result in Distribution and continued losses in NGP.
Free cash outflows deteriorated by £0.1bn to £0.7bn, impacted by legal settlement costs. Underlying net debt rose by £0.6bn to £10.5bn.
Full-year guidance for underlying operating profit growth of 3-5% and free cash flow of at least £2.2bn was unchanged.
The interim dividend was raised 4.0% to 83.36p per share.
The shares rose 1.1% in early trading.
Our view
HL view to follow.
Imperial Brands key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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