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Imperial Brands PLC said Wednesday that it expects revenue for fiscal 2020 to be virtually unchanged from the previous year, dragged by drawbacks in its vaping and next-generation product segments.
The tobacco company IMB, -10.09%, which houses Davidoff and JPS among its brands, didn’t provide any figures for the current financial year, but it made a revenue of 31.59 billion pounds ($41.10 billion) and a pretax profit of GBP1.69 billion for the year ended Sept. 30, 2019.
While the tobacco business continues to thrive, the vaping segment is expected to suffer from the Food & Drug Administration’s ban on certain flavors of cartridge-based vapor devices, the company said. Imperial Brands estimated a GBP45 million hit on adjusted operating profit for the first half of fiscal 2020 coming from the ban.
It said demand for its next-generation products sector continues to suffer from regulatory uncertainty and adverse news flow, and that it estimates this to hurt full-year adjusted operating profit in the measure of around GBP40 million.
