Imperial Brands is on track to deliver in line with its previous full-year guidance, the company announced in a trading update. On a constant currency basis and including Russia in the comparable prior-year period, the company expects tobacco and NGP net revenue growth in the low single digits and group adjusted operating profit growth to accelerate to the lower end of its mid-single-digit range. (Imperial Brands transferred its Russian business to local investors in April 2022.)
At current rates, the company anticipates foreign exchange rates to provide a boost of approximately 2 percent to its full-year net revenue and adjusted operating profit.
“Focused investment in our priority combustible markets is expected to deliver a further modest gain in the aggregate share for our top 5 markets at the full year,” the company wrote in its update. “This will complete three consecutive years of improved market share performance following several years of decline.
Imperial expects market share growth in the U.S., Spain and Australia to offset declines in Germany and the U.K. “This positive aggregate share performance has been achieved while delivering strong pricing across all five markets and reflects the strengthened equity of our brands and our improved resilience as a result of our recent targeted investments,” Imperial wrote.
“As anticipated, at constant currency, our tobacco net revenue growth improved in the second half of the year as continued strong pricing helped to offset the relatively higher volume declines against historic averages.
“Tobacco net revenue growth has remained strong in Europe and the AAACE region, more than offsetting declines in the U.S. Our U.S. cigarette business has outperformed with continued growth in cigarette net revenue, although, as expected, this has been more than offset by a decline in mass market cigar net revenue against a strong comparator period.”
Imperial Brands’ full-year NGP revenue growth accelerated in the second half of the year, driven by strong growth in Europe.
In its trading update, Imperial also announced a further £1.1 billion ($1.36 billion) share buyback for fiscal 2024, a 10 percent increase on the £1.0 billion buyback in fiscal year 2023.
Imperial will announce its full-year results on Nov. 14.