Half Year Results Statement


Half Year Results Statement


Report for the six months ended 31 March 2022

Business Highlights

  • Good progress in delivering on our strategic objectives
  • Strategic investment driving growth in aggregate market share in top-five priority markets
  • Successful NGP trials underpin further market roll-outs in heated tobacco and vapour
  • Implementing our new purpose, vision and behaviours to align our culture to our strategy
  • Strong operating cash generation delivering further deleverage, as anticipated
  • On track to deliver full year results in line with guidance

Watch video summary of results (opens in YouTube)

Financial Summary

Six months ended 31 March 2022 Reported Adjusted3
  2022 2021 Change 2022 20212 Actual Constant
Revenue/Net revenue1 £m 15,362 15,568 -1.3% 3,495 3,571 -2.1% +0.3%
Operating profit £m 1,201 1,637 -26.6% 1,600 1,586 +0.9% +2.9%
Basic earnings per share pence 105.2 191.2 -45.0% 113.0 107.0 +5.6% +7.7%
Net debt £m (9,757) (11,003)   (9,157) (10,328)    
Dividend per share pence 42.54 42.12 +1.0% 42.54 42.12 +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 The 2021 net revenue and adjusted operating profit metrics exclude the contribution of the Premium Cigar Division from that financial reporting period following its divestment in October 2020. The Premium Cigar Division contributed £21 million to net revenue and £3 million to adjusted operating profit in 2021.

3 See page 3 for basis of presentation, page 17 and notes 3, 5, 9 and 12 of the financial statements for the reconciliation between reported and adjusted measures.

4Constant currency removes effect of exchange rate movements on the translation of the results of our overseas operations.

Stefan Bomhard, Chief Executive

“We are now 18 months into our five-year strategy to build a more sustainable Imperial capable of consistent growth – and I am pleased with the progress we are making.

“These results provide further evidence that we have achieved the stabilisation of our core combustible business. During the first half of the year, we increased aggregate market share in the five priority markets which account for around 70 per cent of our operating profit, while maintaining pricing discipline. This strong performance is an outcome of our tighter performance management and disciplined investment in sales execution and brand building. Meanwhile, our more focused approach to our broader portfolio of markets is delivering a stronger performance from regions, such as Africa. In April, we delivered on our earlier commitment to exit Russia, with the orderly transfer of our business to local investors.

“In next generation products, consumers have given positive feedback on our recent trials, validating our new insights-driven approach. We will now roll out our Pulze and iD heated tobacco proposition to further European markets and, in US vape, we are extending our refreshed blu marketing proposition. We have also started a pilot in France for an all-new vapour device, the first new NGP product from our redesigned innovation pipeline.

“Our strategy is being supported by a comprehensive culture change programme, designed to embed more consumer-centric, collaborative and future-focused ways of working, across every level of the organisation.

“Our focus for the remainder of 2022 will be to invest further in our five priority markets and begin the roll-out of our NGP strategy. While these are uncertain times, as we move into 2023, we will have in place the capabilities and culture necessary to support the next phase of our strategy and deliver 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    

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We're a global consumer-focused organisation and the fourth largest international tobacco company.
We're a global consumer-focused organisation and the fourth largest international tobacco company.
We're a global consumer-focused organisation and the fourth largest international tobacco company.

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