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Category: Business & Finance

  • Imperial Posts 1.8% Growth in First Half of 2026

    Imperial Posts 1.8% Growth in First Half of 2026

    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.”

  • Ispire Partners to Expand into Nicotine Pouch Market

    Ispire Partners to Expand into Nicotine Pouch Market

    Ispire Technology announced that it entered into a joint venture with Shandong Jincheng Pharmaceutical Group to manufacture and commercialize nicotine pouch products, marking its expansion into the oral nicotine segment. The partnership combines Jincheng Pharma’s manufacturing capabilities and pharmaceutical expertise with Ispire’s regulatory infrastructure and global distribution network, enabling rapid entry into a category projected to grow significantly in the coming years.

    The move diversifies Ispire’s portfolio beyond vaping hardware and positions the company to tap into a fast-growing market estimated at $7 billion in 2025. The company said the joint venture will support near-term production and commercialization, while forming part of a broader strategy to build a multi-category nicotine platform focused on reduced-risk products.

  • Imperial Says Middle East Impact Won’t Be Seen Until 2027

    Imperial Says Middle East Impact Won’t Be Seen Until 2027

    Imperial Brands said ongoing conflict in the Middle East could raise costs and weigh on consumer demand if prolonged, though the company has not yet seen a material impact and maintained its full-year guidance. CEO Lukas Paravicini told reporters that any disruption—particularly to inputs such as filters and plastics and to logistics—would likely affect financial performance from 2027 onward, as energy and supply chain pressures build.

    For the first half, Imperial reported small growth slightly below expectations, as cigarette volume declines and competition in next-generation products weighed on performance. The company also reported a 16-basis-point decline in market share across key markets, reflecting a strategic focus on profitability over volume.

  • Filtrona Report Touts ESG Progress

    Filtrona Report Touts ESG Progress

    Filtrona announced the release of its 2025 Sustainability Report, highlighting a shift from environmental, social, and governance (ESG) commitments to measurable performance across its global operations. The company reported a 51% reduction in Scope 1 and 2 emissions in line with its Science Based Targets, alongside achieving zero waste to landfill across its sites and increasing the share of sustainable or plastic-free products to 24% of its portfolio. Filtrona also strengthened responsible sourcing, with 88% of wood-based materials certified or controlled, and continued investment in workforce development and governance practices.

    The company said its progress reflects a broader transition toward embedding sustainability into day-to-day operations, supported by external recognition, including EcoVadis Gold status and CDP “B” ratings across climate, forests, and water. Filtrona reported no substantiated incidents related to corruption, discrimination, or human rights violations during the period, and emphasized that ESG is now being operationalized as a core component of long-term business performance and value creation.

  • Haypp Resumes Sales in Alabama

    Haypp Resumes Sales in Alabama

    Haypp Group announced that it has resumed operations in Alabama, expanding access to nicotine pouch products for verified adult consumers as part of its broader U.S. growth strategy. The company said its platforms, Nicokick and Northerner, will offer more than 300 products in the state through direct-to-consumer delivery, particularly targeting areas with limited retail availability.

    Haypp emphasized that its return to the Alabama market will operate under strict compliance standards, including robust age and identity verification to ensure sales are restricted to adults 21 and over. The move reinforces the company’s focus on regulated online distribution channels as it continues to expand its presence in the U.S. nicotine market.

    In June 2025, Alabama enacted major changes to its vape and alternative nicotine laws, prompting many companies in the industry to pause sales as parts were clarified and enforcement evolved to ensure compliance.

  • PMI Warns Middle East Conflict Will Spur Illicit Trade in Asia

    PMI Warns Middle East Conflict Will Spur Illicit Trade in Asia

    Philip Morris International warned that the continuing conflict in the Middle East could disrupt supply chains and drive a surge in illicit cigarette trade across Southeast Asia. The company said past disruptions, such as during the COVID-19 pandemic, led to sharp increases in illegal market share, with illicit trade in the Philippines rising from 6% to 17%. PMI estimates governments in the ASEAN region are already losing around $4 billion annually in cigarette excise revenue, with an additional $2 billion lost from illegal vaping products.

    PMI called for stronger regional coordination to address the issue, including real-time sharing of customs data among ASEAN countries to better track illicit flows. The company said supply constraints and regulatory gaps create opportunities for illegal operators, and urged policymakers to adopt more unified enforcement strategies as the Philippines chairs ASEAN this year.

  • Capital Group Acquires 5.61% Stake in KT&G, Shares Top $122

    Capital Group Acquires 5.61% Stake in KT&G, Shares Top $122

    U.S.-based Capital Group announced that it has acquired a 5.61% stake in South Korea’s KT&G, joining a growing group of major foreign investors in the tobacco company as its share price reaches record levels. The disclosure, required under Korean regulations for holdings above 5%, positions Capital Group alongside other significant shareholders, including BlackRock, First Eagle Investments, and Singapore’s GIC.

    The investment comes amid sustained foreign buying momentum, with overseas investors purchasing an estimated 800,000 shares worth about KRW 140 billion ($96.6 million) over 19 consecutive trading sessions through May 7. The influx of capital has helped push KT&G’s stock above KRW 180,000 ($122.40) for the first time, reflecting increased investor interest in the company’s performance and outlook.

  • JTI Reports Revenue Up 15%

    JTI Reports Revenue Up 15%

    Japan Tobacco Inc. reported first-quarter 2026 revenue of JPY 924 billion ($5.9 billion), up 15.2% year-over-year, with operating profit rising 24.7% to JPY 304.6 billion ($1.9 billion), supported by pricing, foreign exchange benefits, and strong growth in reduced-risk products (RRP). RRP revenue increased 63.8% to JPY 43.5 billion ($278 million), with shipment volumes up 44.2% to 4.3 billion units, driven largely by continued expansion of its Ploom heated tobacco platform across 25 markets.

    Combustible volumes remained broadly stable at 131.3 billion units, with growth in global flagship brands offsetting declines in some regions, while JT reported market share gains in more than 45 countries. The company maintained its full-year outlook, forecasting revenue of JPY 3.697 trillion ($23.7 billion) and operating profit of JPY 921 billion ($5.9 billion), as it continues to balance stable cigarette performance with accelerated investment in next-generation products.

  • KT&G Reports 27% Increase in Q1 2026

    KT&G Reports 27% Increase in Q1 2026

    KT&G reported a 27.6% year-over-year increase in first-quarter operating profit, supported by growth across both traditional cigarette and next-generation product (NGP) segments. Consolidated revenue reached KRW 1.7 trillion ($1.16 billion), up 14.3%, while operating profit rose to KRW 364.5 billion ($248 million). The company’s global combustible cigarette business saw strong performance, with shipment volumes increasing 15% and operating profit rising 56.1%, driven by higher sales and pricing improvements.

    The NGP segment also recorded significant gains, with revenue increasing 51.6% to KRW 241 billion ($164 million) and domestic market share reaching 47.4%. KT&G said it plans to expand its NGP business internationally through independent operations in key markets across Asia-Pacific and Eurasia. The company also continued shareholder returns, canceling treasury shares worth KRW 1.8 trillion ($1.24 billion), equivalent to 9.5% of total shares, and indicated that a new dividend policy will be announced later in 2026.

  • Turning Point Sales Up 16.8% in Q1 2026

    Turning Point Sales Up 16.8% in Q1 2026

    Turning Point Brands reported first-quarter 2026 net sales of $124.3 million, up 16.8% year-over-year, driven primarily by strong growth in its Modern Oral segment. The Stoker’s division, which accounts for the majority of revenue, saw net sales rise 48.1% due to triple-digit growth in modern oral products, while the Zig-Zag segment declined 22.4% amid lower U.S. shipments. Gross profit increased 14.6% to $68.3 million, though net income fell 19% to $11.7 million, reflecting higher investment in sales, marketing and distribution.

    The company said it is investing heavily to capture growth in the evolving nicotine category, particularly in nicotine pouches, and raised its full-year outlook for Modern Oral sales. Turning Point Brands expects Modern Oral gross sales of $280–$300 million in 2026 and remains focused on scaling the segment while leveraging cash flow from legacy brands to support long-term growth.