Rolls-Royce aims for double-digit profit growth in 2024

(Coquille in title)

LONDON, Feb 22 (Reuters) – Britain’s Rolls-Royce said on Thursday it expects profits to rise 25% this year, after beating targets to more than double its profits by 2023.

Rolls-Royce shares rose 10.95% on the London Stock Exchange at 12:40 GMT.

The manufacturer’s stock price jumped more than 200% under the leadership of Tufan Erginbilgic, who took over the reins of the manufacturer in early 2023 and launched a turnaround plan to cut costs and improve prices.

“We are building momentum with a track record of significant results,” the CEO said in a conference call Thursday.

The group’s underlying operating profit rose to 1.6 billion pounds (1.9 billion euros) in 2023, above analysts’ forecasts of 1.4 billion pounds, and surpassing the 652 million pounds recorded in 2022.

Bernstein analyst George Zhao called 2023 a “historic year” for Rolls-Royce.

“The main source of implementation is progress towards the 2027 goals,” he explains.

For 2024, Rolls Royce expects an underlying operating profit of between 1.7 and 2 billion pounds, more than the consensus of 1.695 billion.

The group, which makes jet engines, has benefited from increased demand for travel since the pandemic. (Reporting by Sarah Young; French version by Stéphanie Hamel and Carole Lebreton, editing by Kate Entryger)