Imperial Brands Expects Fiscal Year 2020 Vaping Regulation Headwind
February 05 2020 - 3:17AM
Dow Jones News
By Matteo Castia
Imperial Brands PLC (IMB.LN) said Wednesday that it expects
revenue for fiscal 2020 to be virtually unchanged from the previous
year, dragged by drawbacks in its vaping and next-generation
product segments.
The tobacco company, which houses Davidoff and JPS among its
brands, didn't provide any figures for the current financial year,
but it made a revenue of 31.59 billion pounds ($41.10 billion) and
a pretax profit of GBP1.69 billion for the year ended Sept. 30,
2019.
While the tobacco business continues to thrive, the vaping
segment is expected to suffer from the Food & Drug
Administration's ban on certain flavors of cartridge-based vapor
devices, the company said. Imperial Brands estimated a GBP45
million hit on adjusted operating profit for the first half of
fiscal 2020 coming from the ban.
It said demand for its next-generation products sector continues
to suffer from regulatory uncertainty and adverse news flow, and
that it estimates this to hurt full-year adjusted operating profit
in the measure of around GBP40 million.
Write to Matteo Castia at matteo.castia@dowjones.com
(END) Dow Jones Newswires
February 05, 2020 03:02 ET (08:02 GMT)
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