Imperial Brands 1st Half Profit Soared Amid Higher Demand for Wholesale Tobacco -- Update
By Matteo Castia
--Imperial Brands reported a sharp rise in pretax profit for the
first half of fiscal 2021 on higher revenue
--While travel restrictions hurt the duty-free business, the
pandemic boosted wholesale
--The company's profitability also benefited from the disposal
of the premium cigar division and lower amortization and
Imperial Brands PLC reported Tuesday a sharp rise in pretax
profit for the first half of fiscal 2021, boosted by rising revenue
from changing consumer habits amid the coronavirus pandemic.
The tobacco group--which houses Davidoff, Gauloises and JPS
among its brands--made a pretax profit of 2.06 billion pounds
($2.91 billion) for the six months ended March 31, compared with
GBP785 million in the year-earlier period.
The company said that, while travel restrictions hurt its
duty-free business, the pandemic has boosted wholesale sales to
meet increasing pantry loading demand. All in all, pandemic-related
changes to consumer buying patterns has continued to be a net
benefit to revenue, it said.
Revenue rose to GBP15.57 billion from GBP14.67 billion a year
Operating profit, one of the company's preferred metrics, jumped
to GBP1.64 billion from GBP925 million the prior year, driven
primarily by profit on the disposal of the premium cigar division
worth GBP281 million and a reduction in amortization and impairment
of acquired intangibles worth GBP225 million, the FTSE 100 company
The board declared an interim dividend of 42.12 pence, a 1%
increase on year in line with the group's progressive dividend
Shares at 0835 GMT were up 16.5 pence, or 1%, at 1,606.5
Write to Matteo Castia at email@example.com
(END) Dow Jones Newswires
May 18, 2021 05:06 ET (09:06 GMT)
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