Rolls-Royce has hailed “strong first half results,” giving it confidence to raise guidance.
The business reported significantly higher operating profit despite a challenging supply chain environment. Underlying operating profit rose by £0.5bn to £1.1bn, a 74% increase versus the prior period.
This was driven by Rolls-Royce’s transformation programme and strategic initiatives, with commercial optimisation and cost efficiency benefits across the group.
Underlying revenue, meanwhile, passed £8bn, up from just under £7bn in the same period last year.
Full year guidance has now been raised, with Rolls-Royce expecting underlying operating profit between £2.1bn and £2.3bn.
Tufan Erginbilgic, CEO, said: “Our transformation of Rolls-Royce into a high-performing, competitive, resilient, and growing business is proceeding with pace and intensity. We are expanding the earnings and cash potential of the business in a challenging supply chain environment, which we are proactively managing. We are on track to deliver our mid-term targets.
“Our strong first half results reflect the continued delivery of our strategic initiatives and a relentless focus on commercial optimisation and cost efficiencies across the Group. These results and our increased financial resilience give us the confidence to raise our 2024 guidance and reinstate shareholder distributions in respect of the full year 2024 results.”
