Strong pricing for combustibles and NGP growth is driving Imperial’s positive outlook. Photo credit: Imperial Brands
Imperial Brands announced it was on track to meet half-year and full-year guidance as it continues to make good progress implementing its five-year strategy to transform the business. The company expects higher profits for the first half of the year, attributing this increase to robust tobacco pricing and a rise in sales of products like disposable vapes. It remains confident it will deliver the full-year accelerated adjusted operating profit growth in line with previously stated medium-term guidance.
For the full-year, on a constant currency basis, tobacco and NGP net revenue is expected to grow at a low single-digit rate, with group adjusted operating profit growing at a rate close to the middle of the company’s mid-single digit range.
Constant currency tobacco and NGP net revenue growth has strengthened over the same period last year underpinned by strong combustibles pricing and growth in Imperial’s NGP business. In combustibles, focused investment in the company’s five priority markets continues to support resilient aggregate market share with gains in the US, Spain, and Australia, broadly offsetting declines in Germany and the UK, as expected. These results are consistent with Imperial’s medium-term objective to hold or grow aggregate share across these markets. At the same time, Imperial has delivered strong pricing, more than offsetting wider industry volume pressures in certain markets.
NGP first half net revenues are expected to grow in the mid- to high-teens at constant currency, as Imperial builds on its existing footprint. The company is now present in more than 20 European markets and the US, and, in the first half, Imperial launched innovative products in all three categories. These included new single-use formats under the blu brand, new iSenzia non-tobacco heat sticks, and entry in the US oral nicotine category with the Zone range of pouches.