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Imperial Brands FY Pre-tax Profit Rises; Sees Stronger Financial Performance In 2021

British tobacco company Imperial Brands plc. (IMB.L,IMBBF.PK,IMBBY.PK) reported that its profit before tax for the year ended 30 September 2020 rose to 2.17 billion pounds from 1.69 billion pounds last year.

Adjusted earnings per share were 254.4 pence, down 5.6 per cent at constant currency and down 6.6 per cent at actual rates, reflecting operating profit weakness as well as a higher effective tax rate.

Profit attributable to owners of the parent for the year grew to 1.50 billion pounds or 158.1 pence per share from 1.01 billion pounds or 105.8 pence per share in the previous year, reflecting prior year impairment charge for Premium Cigar sale.

Revenue for the year rose to 32.56 billion pounds from 31.59 billion pounds in the year. Tobacco volume was down 2.1% reflecting better market size and share trends in several markets.

The Board approved a further interim dividend of 48.00 pence per share and will propose a final dividend of 48.01 pence per share, bringing the total dividend for the year to 137.71 pence per share. The third interim dividend will be paid on 31 December 2020. The proposed final dividend will be paid on 31 March 2021.

The company expects to deliver a stronger financial performance in 2021, following a difficult 2020. The company now expects to deliver low to mid-single digit growth in organic adjusted operating profit at constant currency, excluding the impact of the Premium Cigar sale.

The company said a higher tax rate will have an about 2% impact on earnings with constant currency earnings per share expected to be slightly ahead of the prior year.

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