Imperial Brands reported modest first-half 2026 growth, with tobacco and next-generation product (NGP) net revenue rising 1.8% to £14.7 million and overall revenue up 0.8%, supported by pricing gains that offset declining cigarette volumes. NGP revenue increased 7.5%, driven by strong performance in Asia, Africa, and Eastern Europe, and continued market share growth across all categories. Adjusted operating profit rose slightly, while reported profit declined significantly due to one-off costs tied to a legal settlement and strategic transformation initiatives.
Cash generation remained strong, with £2.6 billion in free cash flow and a 98% conversion rate, supporting £809 million in share buybacks and a 4% dividend increase. The company said it remains on track to meet full-year guidance and is progressing with its 2030 strategy, targeting £320 million in annual cost savings while investing in transformation efforts to improve efficiency and expand its NGP portfolio.
“While staying laser-focused on in-year delivery, we are also making progress on self-help activities to drive efficiency and our long-term transformation to build the capabilities which will underpin our future growth,” Chief Executive Lukas Paravicini said. “We are making good progress on focusing our supply chain footprint and have begun implementing our strategic partnership with Capgemini.”
