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| Six months ended 31 March 2022 | Reported | Adjusted3 | ||||||
|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | Change | 2022 | 20212 | Actual | Constant currency4 |
||
| Revenue/Net revenue1 | £m | 15,362 | 15,568 | -1.3% | 3,495 | 3,571 | -2.1% | +0.3% |
| Operating profit | £m | 1,201 | 1,637 | -26.6% | 1,600 | 1,586 | +0.9% | +2.9% |
| Basic earnings per share | pence | 105.2 | 191.2 | -45.0% | 113.0 | 107.0 | +5.6% | +7.7% |
| Net debt | £m | (9,757) | (11,003) | (9,157) | (10,328) | |||
| Dividend per share | pence | 42.54 | 42.12 | +1.0% | 42.54 | 42.12 | +1.0% | +1.0% |
1 Reported revenue includes duty, similar items, distribution and sale of peripheral products which are excluded from net revenue; net revenue comprises reported revenue less duty and similar items, excluding sale of peripheral products and distribution revenue.
2 The 2021 net revenue and adjusted operating profit metrics exclude the contribution of the Premium Cigar Division from that financial reporting period following its divestment in October 2020. The Premium Cigar Division contributed £21 million to net revenue and £3 million to adjusted operating profit in 2021.
3 See page 3 for basis of presentation, page 17 and notes 3, 5, 9 and 12 of the financial statements for the reconciliation between reported and adjusted measures.
4Constant currency removes effect of exchange rate movements on the translation of the results of our overseas operations.
“We are now 18 months into our five-year strategy to build a more sustainable Imperial capable of consistent growth – and I am pleased with the progress we are making.
“These results provide further evidence that we have achieved the stabilisation of our core combustible business. During the first half of the year, we increased aggregate market share in the five priority markets which account for around 70 per cent of our operating profit, while maintaining pricing discipline. This strong performance is an outcome of our tighter performance management and disciplined investment in sales execution and brand building. Meanwhile, our more focused approach to our broader portfolio of markets is delivering a stronger performance from regions, such as Africa. In April, we delivered on our earlier commitment to exit Russia, with the orderly transfer of our business to local investors.
“In next generation products, consumers have given positive feedback on our recent trials, validating our new insights-driven approach. We will now roll out our Pulze and iD heated tobacco proposition to further European markets and, in US vape, we are extending our refreshed blu marketing proposition. We have also started a pilot in France for an all-new vapour device, the first new NGP product from our redesigned innovation pipeline.
“Our strategy is being supported by a comprehensive culture change programme, designed to embed more consumer-centric, collaborative and future-focused ways of working, across every level of the organisation.
“Our focus for the remainder of 2022 will be to invest further in our five priority markets and begin the roll-out of our NGP strategy. While these are uncertain times, as we move into 2023, we will have in place the capabilities and culture necessary to support the next phase of our strategy and deliver sustainable growth in shareholder value.”
| Investor Contacts | Media Contacts | ||
| Peter Durman | +44 (0)7970 328 903 | Jonathan Oliver | +44 (0)7740 096 018 |
| James King | +44 (0)7581 052 880 | Simon Evans | +44 (0)7967 467 684 |
| Jennifer Ramsey | +44 (0)7974 615 739 |
