Imperial Brands PLC knocked by COVID-19 costs and vaping losses

PLC () said additional costs for COVID-19 and losses in its non-tobacco arm hit its results for the year to end September 2020.

Net revenues for the year dipped slightly to £7.99bn, while operating profits were 5.7% lower at £3.53bn.

New chief executive Stefan Bomhard said it had been a difficult year for the tobacco group and he will reveal the results of a strategic review of the business currently underway in January.

Bomhard said the group has already made progress at the next-generation products (vaping) arm with losses reduced in the second half, though over the full year the division posted a loss of £323mln after additional stock write-downs.

Tobacco profitability also fell due to an additional £90mln of COVID-19 related costs, higher regulatory costs and fines.

Imperial cuts it dividend earlier the year and this time announced a full-year payment of 137.7p, down a third on a year ago and in line with its new rebased level.

Bomhard added: “What I have seen to date confirms my view of the group’s solid foundations. I believe there is scope to enhance returns from our tobacco business and opportunities to strengthen our NGP delivery over time. “