By Elena Vardon
Imperial Brands said it expects to meet its guidance for fiscal 2023 and that it will launch a bigger share buyback in fiscal 2024.
The tobacco group–which houses Davidoff, Gauloises and JPS among its brands–said its trading for the year ended Sept. 30 is seen in line with its guidance of low-single-digit growth in tobacco and next-generation products net revenue. It had also guided for group adjusted operating profit growth to accelerate to the lower end of its mid-single-digit range.
It said it had seen improved tobacco net revenue growth over the second half of the year on strong pricing, which offset higher volume declines. Next-generation products–which include vape, heated tobacco and oral nicotine–revenue growth also accelerated in the period on strong growth in Europe, it added.
The FTSE 100-listed company said it is undertaking a 1.1 billion pounds ($1.33 billion) share buyback for fiscal 2024, which will start on Oct. 6 and end in September 2024 and represents a 10% increase on the previous year’s program. It added that it expects total capital returns in the year to exceed GBP2.4 billion, including dividends and buybacks.
Write to Elena Vardon at [email protected]
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