Imperial Brands PLC (IMB.LN) said Thursday that it doesn't expect U.S. tax reforms to have any material benefit on its adjusted effective tax rate for fiscal 2018 and beyond.
The FTSE 100-listed tobacco company said it benefits from substantial U.S. tax amortization of goodwill and intangibles which contributes to a relatively low adjusted effective tax rate.
For the year ending Sept. 30 Imperial Brands anticipates that the tax change on its U.S. earnings will result in a benefit of less than 1% for its tax rate and it continues to expect a group adjusted effective tax rate of around 20%.
Imperial Brands also said U.S. tax reform will result in a one-off credit of around 20 million pounds ($27.7 million), which isn't expected to affect adjusted earnings for fiscal 2018.
The tax law passed by U.S. Congress late last year and signed by President Donald Trump on Dec. 22 includes a reduction of the corporate-tax rate to 21% from 35% and limits on the deductibility of corporate interest payments.
Shares in Imperial Brands at 1318 GMT were down 68 pence, or 2.2%, at 3,004.50 pence.
Write to Maryam Cockar at firstname.lastname@example.org
(END) Dow Jones Newswires
January 18, 2018 08:50 ET (13:50 GMT)