Imperial Brands Sets Strategy to Spur Profit, Grow Dividend Through to 2025
January 27 2021 - 8:59AM
Dow Jones News
By Jaime Llinares Taboada
Imperial Brands PLC on Wednesday unveiled a new strategy to
improve profits and progressively increase the dividend until 2025
by cutting costs and focusing on its core businesses.
The FTSE 100 tobacco company is proposing to reorganize and
simplify the business by focusing its top markets and brands. The
group is aiming to generate annualized savings of 100 million-150
million pounds ($137.3 million-$206.0 million) by the end of fiscal
2023, which would be partly used to increase investments in core
capabilities such as sales and marketing by GBP50 million-GBP60
million.
As a result, Imperial Brands expects to grow its revenues by
1%-2% between fiscal 2020 and fiscal 2025, and to increase the
adjusted operating profit at a mid-single-digit organic annual rate
from fiscal 2023 until fiscal 2025.
In addition, the company promised to annually increase the
dividend from the current rebased level--taking into account
underlying business performance--and said it will consider surplus
capital returns to shareholders once the leverage target of 2.0-2.5
times net-debt-to-Ebitda ratio is achieved.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
January 27, 2021 08:44 ET (13:44 GMT)
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