Imperial Brands Sees Fiscal Year 2020 Net Revenue Broadly Flat Despite Coronavirus

By Joe Hoppe

Imperial Brands PLC said Thursday that it expects group net revenue to be broadly flat in fiscal 2020, slightly ahead of previous guidance, despite a disrupted environment due to the coronavirus.

The tobacco company, which houses Davidoff, Gauloises and JPS among its brands, said it expects to report that revenue from its tobacco business rose by 1% at constant currency rates in the year ended Sept. 30.

Trading in its Next Generation Product business, however, was disappointing, though in line with revised expectations, and is expected to deliver revenue 30% lower than the year before.

Earnings per share are also expected to fall 6% at constant currencies.

The company said that in Europe and the U.S., it has experienced better-than-expected and overall increased demand for tobacco despite the coronavirus, offsetting weaker volumes in the duty-free and summer destination channels.

Imperial said its cash generation will beat its original expectations driven by a continued focus on cash management, its lower capital expenditure, charge timings and restructuring delays due to the coronavirus.

The sale of its premium cigar business for 1.22 billion euros ($1.44 billion) is still on track for Oct. 29, Imperial added.

Write to Joe Hoppe at joseph.hoppe@wsj.com

(END) Dow Jones Newswires

October 08, 2020 02:33 ET (06:33 GMT)

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