Shares in Imperial Brands (LON:IMB) have slipped into negative territory in today’s session after a positive start, as the tobacco maker delivered a rise in full-year revenues, while posting a fall in earnings per share (EPS). The update comes after the group reiterated its full-year expectations in September, saying at the time that it expects its new generation products (NGP) business to contribute to group profit as Imperial exits FY19.
As of 10:33 GMT, Imperial Brands’ shares had given up 0.32 percent to 2,635.00p, having traded about 0.2 percent higher earlier in the session. The decline is largely in line with losses in the broader market, with the benchmark FTSE 100 index currently standing 0.36 percent lower at 7,078.55 points.
Imperial Brands posts results
Imperial Brands announced in a statement this morning that the group’s net revenue had climbed two percent in the financial year ended September 30, with its tobacco and NPG businesses each delivering one-percent growth. The group’s EPS, however, dropped 2.7 percent during the reported period at actual exchange rates, impacted by the Palmer & Harvey write-off and forex headwinds.
“FY18 was a successful year of delivery against our strategy,” Imperial Brands’ chief executive Alison Cooper commented in the statement, adding that the successful international rollout of its myblu NGP product had put the group “in a strong position to further invest and accelerate sales growth in FY19”.
Analysts upbeat on group
“We continue to think Imperial will surprise investors to the upside in a reduced risk world,” Jefferies analyst Owen Bennett commented, as quoted by Reuters. Proactive Investors meanwhile quoted Liberum as saying in a note to clients that “today’s beat should reassure investors. Imperial is our top pick in tobacco”.