Imperial’s £225m hit from Russia

IMPERIAL Brands has revealed it took a £225m hit from its decision to pull out of its factory and marketing division in Russia.

The tobacco company’s profits fell by 26.6pc to £1.2bn for the six months to March after it handed its Volgograd factory and other assets to outside investors. Imperial Brands, which owns the Golden Virginia and Rizla labels, was one of the first tobacco companies to abandon Russia following Vladimir Putin’s invasion of Ukraine.

The company said yesterday that it had transferred the Russian business, which made up 1.5pc of net revenues, to “local” investors.

Stefan Bomhard, chief executive, said: “In April, we delivered on our earlier commitment to exit Russia, with the orderly transfer of our business to local investors.” Imperial Brands said its business in Ukraine, where it has 600 staff, has also been affected by the conflict.

Its share price jumped almost 8pc in afternoon trading on the back of strong sales of e-cigarettes and heated tobacco.

Imperial Brands still makes the vast majority of its revenues from cigarettes but it has been rolling out a new product strategy.