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The tobacco group Imperial Brands makes a small profit from leaving Russia

FILE PHOTO: Packs of Gauloises cigarettes on display at a tobacco shop in Vienna, Austria, May 12, 2017. REUTERS / Leonhard Foeger

March 15, 2022

(Reuters) – Imperial Brands has begun talks to move its Russian business to a local third party following the Ukraine crisis, the tobacco industry said on Tuesday, with a small blow to annual revenue and earnings due to the exit.

Winston cigarette and cigar maker Backwoods has said it will continue to pay its 1,000 employees in Russia until the transfer of its business is completed.

The London-based tobacco group suspended operations in Russia last week following international sanctions against the country following its invasion of Ukraine.

Imperial Brands, whose operations in Russia and Ukraine accounted for only 2% of its net revenue last year, forecast revenue growth of 2022 will be stable at up to 1%. It previously expected a growth rate of around 1.4% on a fixed currency basis.

“While there will be some ongoing costs associated with the suspension in Ukraine, we expect a relatively small impact on our consistently adjusted foreign exchange earnings, reflecting the limited profit contribution of the two markets,” Imperial said in a statement.

Competitive British American Tobacco last week also narrowed its prospects as Camel plans to leave Russia.

(Report by Yadarisa Shabong in Bengaluru; Edited by Anil D’Silva and Vinay Dwivedi)



The tobacco group Imperial Brands makes a small profit from leaving Russia

Source link The tobacco group Imperial Brands makes a small profit from leaving Russia

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