Tobacco firm takes hit after Russian pull-out

Tobacco giant Imperial Brands has revealed a steep fall in annual profits after taking a £463 million hit from its move to pull out of Russia.

The group behind brands such as blu, Gauloises cigarettes and Rizla posted a 14.7% drop in operating profit to £2.7 billion for the year to September 30, with earnings sent lower by the Russian exit as well as a boost after the sale of its cigar business.

Reported pre-tax profits fell to £2.6bn from £3.2bn the previous year.

Imperial added that earnings will continue to be weighed down from the impact of its Russian withdrawal at the start of the new financial year, with first-half underlying profits expected to largely remain flat.