By Sabela Ojea
Imperial Brands PLC said Tuesday that it has started to negotiate with a local third party regarding the transfer of its Russian assets and operations due to the continuing invasion of Ukraine.
The FTSE 100 tobacco group said it has assessed the financial effects of this new decision and its previous suspension of operations in Ukraine. In fiscal 2021, Russian and Ukrainian markets represented around 2% of net revenue and 0.5% of adjusted operating profit, it said.
The company said it now expects a relatively small hit to full-year constant currency adjusted operating profit. It expects constant currency net revenue growth of between around 0% and 1%. There will be costs related to the suspension in Ukraine, it added. The company's financial year ends on Sept. 30.
Imperial Brands also said an orderly transfer of the business as a going concern is in the best interests of its Russian colleagues, adding that it will continue to pay the salaries of 1,000 employees until a transfer has been successfully concluded.
Last week, Imperial Brands said it had suspended all operations in Russia due to the invasion of Ukraine, halting production at its factory in the city of Volgograd.
Write to Sabela Ojea at email@example.com; @sabelaojeaguix
(END) Dow Jones Newswires
March 15, 2022 03:43 ET (07:43 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.