Shares in tobacco and vaping giant Imperial Brands (IMB) eased 0.4% to £15.90 after flagging an expected hike in sales and marketing investment that is likely to act as a brake on operating profit.
The warning came alongside full year results for the year to 30 September that saw pre-tax profit rise to £3.24 billion from £2.17 billion on revenue that nudged 1.4% higher to £3.15 billion.
Tobacco revenue was up 1.5% while next generation products, the vaping and heated tobacco arm, saw revenue decline 3.9%, reflecting market exits in Japan and Russia.
The annual dividend was increased by a below inflation 1% to 139.08p per share.
LAUNCHES IN GREECE & CZECH REPUBLIC
The group has been focusing its efforts on the heated tobacco segment given that it currently represents the single largest next generation products category with strong growth prospects. It also plays to its strengths, by leveraging its existing tobacco expertise.
The group has launched Pulze, its heated tobacco product in Greece and the Czech Republic, both well established markets. It represents at least 10% of the total nicotine market in both countries and continues to grow well.
Imperial have also started trials of a new offering for its vape product Blu in Charlotte, North Carolina. The focus is on developing a new on-line sales platform, and enhancing the packaging.
