Imperial Brands is on track to deliver full-year results in line with expectations and the company’s guidance of low-single-digit constant currency net revenue growth. Over the next three years, the company continues to expect operating profit growth to accelerate to a mid-single-digit CAGR at constant currency.
The company has seen a robust tobacco pricing and stable aggregate market share across its top 5 combustible markets against a strong comparator.
Product launches across vapor, heated tobacco and modern oral have driven next-generation product net revenue growth.
First-half group adjusted operating profit is expected to be at a similar level to last year on a constant currency basis. Tobacco and next-generation product (NGP) adjusted operating profit has been impacted by the planned increase in NGP investment, the impact of the company’s exit from Russia and the continued unwind of Covid-19. Growth in distribution adjusted operating profit has helped to mitigate these headwinds.
Imperial is on track to meet full-year expectations and its guidance of growing revenue and operating profit. The company completed £523 million ($654.82 million) of the fiscal year 2023 £1 billion share buyback as part of an ongoing program of capital returns.
The interim results for the six months ended March 31, 2023, will be announced on May 16, 2023.