Imperial Brands, the FTSE 100 tobacco group known for its brands including Davidoff, Gauloises, and JPS, is optimistic about its financial outlook for fiscal 2024. The company anticipates that its adjusted operating profit will fall close to the midpoint of its mid-single digit range, while its revenue is projected to experience growth in the low-single digits.
In a recent announcement, Imperial Brands disclosed that it expects its performance in the upcoming year to be weighted towards the second half. This is primarily due to the phasing out of certain pricing strategies and investments in next-generation products. However, the company remains optimistic about its first-half operating profit, which is expected to see growth in the low-single digits at constant currency.
Chief Executive Stefan Bomhard expressed confidence in the company’s future prospects, stating, “Looking ahead, we expect the continuing benefits of our transformation to enable a further acceleration in our adjusted operating profit growth in the final two years of our five-year strategy.”
For fiscal 2023, Imperial Brands reported an adjusted operating profit of GBP3.89 billion for the year ending September 30th. While this figure represents a 3.8% year-on-year growth at constant currency, it fell slightly below analyst expectations of GBP3.91 billion. The company had initially guided for growth at the lower end of the mid-single-digit range, while market consensus projected 3.5% organic growth compared to the GBP3.69 billion reported in the previous year.