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Imperial Brands warns of lower annual profit due to U.S. FDA ban

Published 02/05/2020, 02:30 AM
Updated 02/05/2020, 02:34 AM
Imperial Brands warns of lower annual profit due to U.S. FDA ban
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(Reuters) - Tobacco group Imperial Brands (L:IMB) said on Wednesday it expects full-year adjusted earnings to be slightly lower than last year due to a U.S. regulatory ban on some flavors of cartridge-based vapor devices and weaker consumer demand.

The warning comes on the heels of Stefan Bomhard's appointment as the Chief Executive Officer of the FTSE 100-listed group.

Imperial Brands said the ban by the U.S. Food and Drug Administration (FDA), which comes into effect this week, has led to a write-down of flavored inventory, which would have a 45 million pounds ($58.55 million) impact on first-half adjusted operating profit.

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