LONDON (Alliance News) - Imperial Tobacco Group PLC on Tuesday reported a rise in profit in its recently-ended financial year, although revenue was blown lower by currency headwinds and difficult trading in the Iraqi and Syrian markets, but Imperial said that while challenges will persist it is well-placed to meet expectations for the new year.
The FTSE 100-listed tobacco company, which owns Golden Virginia tobacco and Rizla cigarette papers, said pretax profit in the year ended September 30 grew to GBP1.75 billion from GBP1.52 billion the year before, although revenue fell to GBP25.28 billion from GBP26.46 billion.
It said results were hit by market size shrinkage and by difficult trading caused by the conflict in Iraq and Syria, and that it also faced headwinds from movements in foreign exchange rates. At constant currency, tobacco net revenue would have grown 4.3%.
Imperial Tobacco will pay a total dividend of 141.0 pence, up 10% on the 128.1p paid the year before.
"Looking to the year ahead, we expect first-quarter volumes will continue to reflect the situation in Iraq and Syria as well as a strong comparator quarter for volumes last year while first half revenue should benefit from stronger relative pricing. Overall, we are well placed to meet expectations for the coming year," the company said in a statement.
"Challenges will persist in some markets but we have the assets and capabilities to further drive quality growth in this environment. We have the brands, the footprint and the people to make 2016 another successful year of value creation," it added.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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