Imperial Brands, formerly known as Imperial Tobacco, has followed in the foot steps of hundreds of other companies and stopped business in Russia and now are in discussions with a domestic company for the temporary transfer of the firm’s Russian assets and operations.
Russia and Ukraine has little impact on the group and contributed about 2% of net revenues and 0.5% of adjusted operating profit in 2021.
Across the two countries, the firm employs around 1,600 workers and have continued to pay them during the halt in business operations.
The company has decided to transfer over the assets to a local company to ensure that the business continues and safeguards their employee’ salaries in Russia and Ukraine.
The group has also been aiding their Ukrainian colleagues with help relocating, transportation and shelter to protect them from consequences of the conflict.
With the analysis of the impact from the business halts and transfers in Russia and Ukraine, the firm revised their full year guidance.
The company expects to have a full-year constant currency net revenue growth between 0-1%. However due to the minimal impact of this region on the groups revenues and profits, the company is not wary of any costs incurred by the business strike.
Imperial’s shares were down 2.1% to 1,517p as the company finds local business to transfer assets to.