Imperial Brands profits rise as new generation products reduce losses

Imperial Brands has released full year results in which reported revenues rose 0.7% to £32.8 billion.

The group’s rise in revenue was attributed to excise duty, however, the group did manage to grind out a 4.8% increase in operating profit as losses were reduced on their new generation products.

“In what has been an eventful year for all businesses, Imperial Brands today announced a set of sturdy FY results for the year ending 30th September 2021. Organic adjusted revenue was up 1.4%, with tobacco growth of 1.5%. Tobacco price mix was up 4.4%, more than offsetting volume declines of 2.9%,” Sara Welford, Director Consumer, Edison Group.

Imperial Brands shares fell over 1% in early trade on Tuesday following the release of their results.

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Imperial Brands have embarked on a change of strategy in the past year which CEO Stefan Bomhard commented on along side the release of the full year results.

“This has been a year of important progress and significant change, as we begin to deliver on the new, focused strategy we announced in January 2021,” commented CEO Stefan Bomhard

“We have substantially refreshed our leadership team, making new hires to strengthen our consumer-facing capabilities, while building on our existing deep tobacco experience. We have changed the way we work, placing the consumer at the centre of our decision making. We have simplified the organisation, creating efficiencies for reinvestment. And we have introduced more rigorous performance management, enabling better prioritisation of resources.”

“This approach is already delivering improved operational and financial outcomes. In tobacco, our sharper focus and increased investment in the top-five priority markets have begun to stabilise the aggregate market share performance. This is encouraging early progress in addressing the long-term historical declines. We will build on this foundation in the coming year, with further investment in brand building and sales execution.

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