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Full Year Results Statement

A YEAR OF GOOD RESULTS WHILE BUILDING FOUNDATIONS FOR FUTURE GROWTH

Report for the year ended 30 September 2021

Business Highlights

  • Transformation programme underway to create more consumer-focused, efficient and performance-driven organisation
  • Operational improvements supporting growth in net revenue, profit and free cash flow
  • Sharper focus on top-five priority markets beginning to arrest long-term share declines
  • NGP pilots in heated tobacco and vapour on track
  • Strong cash flows enabling deleverage progress in line with our plans

Watch video summary of results (opens in YouTube)

Financial Summary

Year ended 30 September 2021 Reported Organic adjusted2
  2021 2020 Change 2021 2020 Actual Constant
currency3
Revenue/Net revenue1 £m 32,791 32,562 +0.7% 7,589 7,738 -1.9% +1.4%
Operating profit £m 3,146 2,731 +15.2% 3,570 3,496 +2.1% +4.8%
Basic earnings per share pence 299.9 158.3 +89.5% 246.5 247.2 -0.3% +2.8%
Free cash flow £m 1,524 3,248 -53.1% 1,524 3,248 -53.1%  
Net debt £m (9,373) (11,141)   (8,615) (10,299)    
Dividend per share pence 139.08 137.7 +1.0% 139.08 137.7 +1.0% +1.0%

1 Reported revenue includes duty, similar items, distribution 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 revenue.

2 See page 3 for basis of presentation, page 28 and notes 3, 6 and 10 of the financial statements for the reconciliation between reported and adjusted measures. For comparison purposes, the Group uses the term “organic” to exclude the contribution of the Premium Cigar Division, which was divested on 29 October 2020. 

3 Constant currency removes effect of exchange rate movements on the translation of the results of our overseas operations.

Stefan Bomhard, Chief Executive

“This has been a year of important progress and significant change, as we begin to deliver on the new, focused strategy we announced in January 2021. We have substantially refreshed our leadership team, making new hires to strengthen our consumer-facing capabilities, while building on our existing deep tobacco experience. We have changed the way we work, placing the consumer at the centre of our decision making. We have simplified the organisation, creating efficiencies for reinvestment. And we have introduced more rigorous performance management, enabling better prioritisation of resources.

“This approach is already delivering improved operational and financial outcomes. In tobacco, our sharper focus and increased investment in the top-five priority markets have begun to stabilise the aggregate market share performance. This is encouraging early progress in addressing the long-term historical declines. We will build on this foundation in the coming year, with further investment in brand building and sales execution.

“Through our focused, consumer-led next generation products strategy, we are committed to making a meaningful contribution to harm reduction over time by offering adult smokers potentially reduced risk products. In line with our plans, we launched market trials for our heated tobacco proposition, Pulze and iD sticks in the Czech Republic and Greece, as well as a trial of an improved consumer marketing proposition for our US vapour product, blu. We will track the consumer data over the coming months to inform our next steps.

“Our five-year plan to transform Imperial is divided into two distinct periods. The year ahead will complete the two-year strengthening phase, with further investment in our five priority markets and NGP pilots, the embedding of new ways of working and cost-saving initiatives. This period builds the foundations for the subsequent three-year phase, which focuses on the acceleration of returns and sustainable growth in shareholder value.”

 

Investor Contacts   Media Contacts  
Peter Durman +44 (0)7970 328 903 Jonathan Oliver +44 (0)7740 096 018
James King +44 (0)7581 052 880 Simon Evans +44 (0)7967 467 684
Jennifer Ramsey +44 (0)7974 615 739