Imperial Brands Plc, the British tobacco firm, has announced on Tuesday that its profit before tax for the fiscal year 2024 decreased to £3.03 billion, compared to the previous year's £3.11 billion. However, the company saw a significant increase in earnings per share, which rose by 19.1% to 300.7 pence from the last year's 252.4 pence.
The adjusted profit before tax for the year was slightly higher, rising to £3.52 billion from £3.48 billion in the prior year. Adjusted earnings per share also improved, reaching 297.0 pence, up from 278.8 pence the previous year. The adjusted operating profit experienced a modest rise of 0.6%, amounting to £3.91 billion.
Annual revenue saw a slight decline of 0.6%, totaling £32.41 billion, down from £32.48 billion in the previous year. Net revenue also decreased to £21.31 billion from £21.66 billion. This decline was primarily due to a drop in tobacco revenue, attributed to lower volumes in markets with high excise duties and unfavorable foreign exchange rates, which were largely counterbalanced by growth in Next Generation Products (NGP) and distribution revenues.
Adjusted net revenue rose to £8.16 billion, compared to £8.01 billion a year prior. Tobacco volumes fell by 4.0% to 190 billion SE, as the decline in volumes continued to normalize across the company's markets.
The Board has proposed a 4.5% increase in the FY24 dividend, setting it at 153.42 pence per share. Looking forward, Imperial Brands anticipates first-half Group adjusted operating profit to grow at a low single-digit rate at constant currency, with performance expected to be stronger in the year's second half due to the timing of combustible pricing and investment.
For the fiscal year 2025, the company projects at least high-single-digit growth in earnings per share at constant currency. Over the upcoming year, the firm expects to see low single-digit growth in both tobacco and NGP net revenue at constant currency. Additionally, it aims to grow Group adjusted operating profit towards the middle of a mid-single-digit range at constant currency.
The company plans to continue its investments to foster another year of double-digit constant currency net revenue growth. Imperial Brands is also in the process of developing its strategy for the next five-year period, extending through 2030.
Chief Executive Stefan Bomhard stated, "We are on track to deliver five-year capital returns of approximately £10 billion, representing 67% of our market capitalisation as of January 2021 when we launched our strategy. We look forward to unveiling the next phase of our strategy at a Capital Markets Day scheduled for 26 March 2025."
