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Imperial Brands, the UK’s second largest tobacco company by revenues, has been given a lift to its revenues from the pound’s weakness following last summer’s Brexit vote.
In a trading update on Thursday, the owner of the Winston, Gauloises and Golden Virginia brands, said it would report up to a 14 per cent lift to its profits in the first half of the year when measured at current exchange rates.
Sterling has tumbled 17 per cent against the US dollar since the EU referendum in June but has steadied this year to trade around $1.20-$1.25.
Imperial, the world’s fourth-largest cigarette maker by market share, has also launched a £300m investment plan in 2017 which it said would weigh on revenue growth when measured in constant currency terms in the first half.
The company, which changed its name from Imperial Tobacco last year, kept its full year earnings guidance unchanged.
Read more: Imperial – dividend and rule (Lex)