UPDATE 2-Imperial forecasts 2024 profit growth, raises dividend
(Updates with CEO in paragraph 3, adds detail on consensus in paragraph 2, CFO in paragraph 6)
By Eva Mathews and Emma Rumney
Nov 14 (Reuters) - Imperial Brands forecast revenue and profit growth next year, but said on Tuesday it would be slower in the first half due to this year's price rises and investments in tobacco alternatives.
The maker of Winston cigarettes reported a 3.9% rise in adjusted operating profit for the 12 months ending Sept. 30, when the impact of foreign exchange and Imperial's exit from Russia were excluded, beating average analyst forecasts of 3.5%.
Chief Executive Stefan Bomhard said that Imperial's strategy, anchored around winning back market share in five key tobacco markets, was translating into positive results, and it expected profits to rise next year and beyond.
The Backwoods cigar and Golden Virginia rolling tobacco maker expects low single-digit 2024 revenue growth and adjusted operating profit near the middle of its mid-single digit range.
However, it said performance will be weighted to the second half of the year, with adjusted operating profit likely growing by low single digits in the first half.
Finance chief Lukas Paravicini told journalists this was because first-half results would be compared to a strong prior year, where Imperial made hefty price increases, and because the company would front-load investments in smoking alternatives.
Some analysts expressed scepticism on a second-half improvement. However, Alicia Forry at Investec said while not ideal, Imperial's explanation seemed credible.
It was critical for Imperial to see a step up in growth of its smoking alternatives, Forry said, adding she would like the 26.4% revenue growth in that division to rise next year.
"They need to be shifting as quickly as they possibly can," she said, amid ever-stricter regulation of tobacco and growing awareness of health risks.
Imperial also raised its annual dividend by 4%. Its shares were flat on Tuesday. ($1 = 0.8141 pounds) (Reporting by Eva Mathews in Bengaluru and Emma Rumney in London; Editing by Subhranshu Sahu, Jason Neely and Alexander Smith)
