14th November 2023
Full Year Results Statement
Report for the year ended 30 Sept 2023
14th November 2023
Report for the year ended 30 Sept 2023
| Reported | Adjusted2 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | Change | 2023 | 2022 | Actual | Constant currency3 |
CC ex Russia4 | ||
| Revenue/Net revenue1 | £m | 32,475 | 32,551 | -0.2% | 8,012 | 7,793 | +2.8% | +0.7% | +1.4% |
| Operating profit | £m | 3,402 | 2,683 | +26.8% | 3,887 | 3,694 | +5.2% | +3.8% | +3.9% |
| Basic earnings per share | pence | 252.4 | 165.9 | +52.1% | 278.8 | 265.2 | +5.1% | +4.2% | +4.3% |
| Free cash flow | £m | 2,364 | 2,562 | - | 2,364 | 2,562 | - | - | - |
| Net debt | £m | (8,438) | (8,492) | - | (8,026) | (8,054) | - | - | - |
| Dividend per share | pence | 146.82 | 141.17 | 4.0% | 146.82 | 141.17 | 4.0% | 4.0% | - |
1 Reported revenue includes duty, similar items, Distribution gross profit (Logista) and sale of peripheral products, which are excluded from net revenue; net revenue comprises reported revenue less duty and similar items, excluding sale of peripheral products and Distribution gross profit (Logista).
2 See page 3 for the basis of presentation and the supplementary section at the end of the financial statements for the reconciliation between reported and adjusted measures.
3 Constant currency removes effect of exchange rate movements on the translation of the results of our overseas operations.
4 Constant currency movement excluding the prior year financial contribution from Russia, following our exit in April 2022.
We look forward to building on our growing operational track record to deliver sustainable returns to shareholders and play a positive, distinctive role in this industry’s transition to a healthier future.
“Three years into Imperial’s transformation, our investments in consumer capabilities, changes to the way we work, and a new performance culture are translating into stronger, more sustainable operational and financial outcomes. In combustible tobacco, improving brand equity and investment in our salesforce capabilities has led to the third consecutive year of stable or growing aggregate market share in the five priority markets which account for 70% of our operating profit. At the same time, we have offset structural volume declines with strong pricing in all key markets.
“In next generation products, our challenger approach, which combines partnership-based innovation with disciplined market entry, is delivering positive results. We now have credible propositions across all categories - vape, heated tobacco and oral nicotine. Following recent launches, we now offer consumers potentially reduced-harm choices in more than 20 European markets, as well as the United States. This step-up in investment in Europe has driven an acceleration in net revenue growth.
“Underpinning this broad-based progress is our continued transformation, which includes new innovation hubs in Liverpool, Hamburg and Shenzhen, modernisation of legacy systems, and investments in upskilling our leaders.
“All of this means we are well placed to deliver on our commitment to enhance returns to investors, with increases to both our dividend and buyback programme. Looking ahead, we expect the continuing benefits of our transformation to enable a further acceleration in our adjusted operating profit growth in the final two years of our five-year strategy. We look forward to building on our growing operational track record to deliver sustainable returns to shareholders and play a positive, distinctive role in this industry’s transition to a healthier future.”
| Investor Contacts | Media Contacts | ||
| Peter Durman | +44 (0)7970 328 903 | Jonathan Oliver | +44 (0)7740 096 018 |
| Jennifer Ramsey | +44 (0)7974 615 739 | Simon Evans | +44 (0)7967 467 684 |
| Henry Dodd | +44 (0)7941 648 421 |
