TOBACCO giant Imperial Brands yesterday reported a sharp fall in profits for the year following a £399m hit from its exit from Russia in March.

Operating profits at the maker of Gauloises and Davidoff cigarettes tumbled 14.7 per cent to £2.68bn in the year to the end of September, down from £3.15bn last year.

The fall was exacerbated by a boost last year from the £281m disposal of its cigar division.

However, adjusted operating profits rose 1.8 per cent to £3.69bn as growth in sales offset a slowdown in its distribution arm.

Swings in currency prices sent revenues down 0.7 per cent despite a 1.3 per cent rise in tobacco revenues to £7.59bn and a 10.8 per cent rise in its "next generation products" to £208m.

In a statement, boss Stefan Bomhard said the firm was now wellplaced to weather a potential slowdown in consumer spending.

Shareholders have been delivered a boost in the past year with a 1.5 per cent growth in dividends alongside an ongoing £1bn share buyback programme.

(c) 2022 City A.M., source Newspaper