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Highlights
- Tobacco major Imperial Brands’ shares continued the uptrend, rising over 1 per cent today, ahead of going ex-dividend later this week.
- The group’s third interim dividend of 48.48 pence per share will be paid on 31 December.
Imperial Brand’s FY 2021 results
The company’s reported revenue in FY 2021 rose by 0.7 per cent to £32,791 million, up from £32,562 million in FY 2020. The rise was attributed to an increase in excise duty.
Its adjusted organic revenue was up by 1.4 per cent (on a constant currency basis) to £7,589 million, from £7,738 million in the year before. The rise in its organic net revenue was due to tobacco growth and other factors.
The group’s reported operating profit grew by 15.2 per cent, to £3,146 million, up from £2,731 million in the previous year.
Imperial’s reported FY 2021 basic earnings per share jumped by 89.5 per cent to 299.9 pence, up from 158.3 pence in FY 2020.
Dividend payout
The group’s reported dividend per share in FY 2021 rose by 1 per cent to 139.08 pence, from 137.7 pence, which is in line with the company’s progressive dividend policy.
The group had previously paid out two interim dividends of 21.06 pence per share this year in June and September, respectively.
Another third interim dividend of 48.48 pence per share also received approval from the company’s board, which is expected to have a payment date of 31 December.
In addition to the above, the group plans to propose a final dividend of 48.48 pence per share, which is expected to have a payment date of 31 March, subject to AGM approval.
Imperial Brands PLC (LON: IMB) share price performance
Imperial Brands’ shares were up by 1.30 per cent, trading at GBX 1,631.50 on 23 November at 10:50 AM BST, while the FTSE 100 index was at 7,249.23, down by 0.09 per cent. (IMB is a constituent of the FTSE 100 index)
Image source: Refinitiv
Image description: IMB share price and performance
The company’s market cap is at £15,241.90 million as of Tuesday.
The company has netted shareholders a return of 6.19 per cent on a year-to-date basis, and 8.88 per cent on a one-year basis, as of 23 November.
The company reportedly has a 10-year compounded dividend growth rate of 3.87 per cent.
FY 2022 outlook
The company expects its net revenue growth in the next year to be similar to its FY 2021 growth rate at a constant exchange rate basis.
However, the group anticipates its adjusted operating profit in FY 2022 will increase at a slightly slower pace than its net revenue growth rate after considering the company’s 5-year strategic investment plans and the non-repeat of its US state litigation settlement costs.
