Tobacco giant Imperial Brands has seen profits edge up despite a “difficult” 2020.
The Bristol-headquartered business saw revenue increase by 3.1 per cent to £35.6billion in the year to September 30, 2020.
A rise in cigarette sales of 1.8 per cent helped offset the company’s losses in its vaping arm, which saw the group’s next generation products (NGP) net revenue decline by 27 per cent.
The company, which makes Davidoff and Lambert & Butler, made the announcement in a trading update today (November 17).
Imperial’s group net revenue was up 0.8 per cent, but adjusted operating profit was down 4.8 per cent. Reported operating profit rose by 24.3 per cent to £2.73billion.
Stefan Bomhard, Imperial Brand’s chief executive, said: “Although this has been a difficult year, the resilience of our tobacco business and the measures we have taken to improve our NGP operations reinforce my confidence in the future potential of the business.
“With a more disciplined focus and better execution we can realise significant value for our stakeholders over time.
The company’s new boss, who joined Imperial in July from automotive distribution and retail business Inchcape plc, said his first months had been focused on engaging with employees, consumers and customers, and leading the strategic review of the business.
He added: “What I have seen to date confirms my view of the group’s solid foundations. I believe there is scope to enhance returns from our tobacco business and opportunities to strengthen our NGP delivery over time.
“I firmly believe we can make a meaningful contribution to harm reduction within a more disciplined, returns focused framework and we have already taken steps to stem the NGP losses.
“I look forward to providing further details of our renewed focus on value creation at a capital markets event in January and I would like to conclude by recognising the tremendous efforts of our employees in these unprecedented times.
“The commitment of our people across the business and their willingness to embrace change has been inspiring to see.”
