Imperial Brands plc (LSE: IMB) saw its share price dip slightly on Tuesday despite the tobacco company raising its full-year dividend on the back of higher annual profits.
The British multinational tobacco company reported flat revenue of £32.48 billion for the 12 months to 30 September, down 0.2% year-on-year. However, Imperial said adjusted net revenue increased 2.8% to £8.01 billion, aided by a 26% jump in next-generation product sales.
Pretax profit climbed 22% to £3.11 billion thanks to strong pricing which offset a 10% slide in cigarette volumes following Imperial’s exit from Russia and weakness in US mass-market cigars.
As a result, Imperial’s board approved a 4% rise in the full-year dividend per share to 146.82p, up from 141.17p last year.
Looking ahead, Imperial said it expects to deliver low single-digit percentage revenue growth in 2023, with adjusted operating profit growth close to the middle of a mid-single-digit range, both at constant currency.
Imperial CEO Stefan Bomhard said the company is “well placed to deliver on our commitment to enhance returns to investors.”
Imperial Brands shares have fallen nearly 15% so far this year and are down 12% over the past 12 months.