20th Apr 2022 17:26
(Alliance News) - Imperial Brands PLC late Wednesday said it has transferred its Russian business to investors based in Russia and there was no change to previous guidance relating to exit from the country.
The move, the tobacco company said, was subject to finalisation of the registration of the transaction with local authorities, which is expected to take place shortly. Imperial's operations include a sales and marketing business, and a factory in Volgograd.
Last month, Imperial had said it anticipates constant currency net revenue be between flat and up 1% in its current financial year, after evaluating the financial fallout of the planned exit from its Russian business and the suspension of operations in Ukraine.
The Bristol-based firm also reiterated there was no change to previous guidance on the financial hit from the exit from Russia and suspension of its Ukraine operations.
In financial 2021, it said Russia and Ukraine represented in total around 2% of net revenue and 0.5% of adjusted operating profit.
In addition, Imperial estimates a non-cash write off of around GBP225 million for this transaction, which it expects to be treated as an adjusting item.
The stock closed up 0.2% at 1,678.50 pence on Wednesday.
By Arvind Bhunjun; [email protected]
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