Imperial Brands has revealed the worldwide regulatory tightening on rules around vaping has hit profits at the tobacco business behind Davidoff cigarettes and Blu vapes.
Sales hit £31.6 billion, up from £30 billion, and pretax profits fell 7% from £1.82 billion to £1.69 billion in the year to September 30. Bosses also revealed a future no-deal Brexit would cost the business £100 million in tax restructuring.
Outgoing chief executive Alison Cooper, who announced her resignation last month, said: "2019 has been a challenging year with results below our expectations due to tough trading in Next Generation Products (NGP). We are implementing actions to drive a stronger performance in the coming year.
"Although we grew NGP revenues by around 50%, this was below the level we expected to deliver. Our delivery was also impacted by an increasingly competitive environment and regulatory uncertainty in the USA. Growth in Europe was also slower, despite achieving leading retail shares in several markets."