Source: Sharecast
Imperial Brands said first half group adjusted operating profits were set to come in slightly ahead of the prior year, with growth expected to accelerate in the second half, in line with previous guidance.
The FTSE 100-listed firm stated tobacco pricing remained a key driver during the period, helping to offset low single digit volume declines, while NGP growth was supported by products such as its Pulze heated tobacco offering and blu vaping devices. However, Imperial also warned that losses from its NGPs would increase slightly as it continues to ramp up investment in building both scale and market share.
Imperial also highlighted that it had made a positive start to its 2030 transformation plan, with strong tobacco pricing and NGP innovation supporting expected low‑single‑digit growth in tobacco and NGP net revenue for the first half. Imperial Brands added that it had completed £700m of its £1.45bn share buyback for the year.
"We reiterate our full-year guidance for FY26 of low-single-digit tobacco and double-digit NGP net revenue growth, three to five per cent group adjusted operating profit growth and at least high-single-digit earnings per share growth, all at constant currency, along with at least £2.2bn in free cash flow," said Imperial.
"The conflict in the Middle East has resulted in a more uncertain geopolitical and macro environment. Whilst there has been no material business impact to date, the potential future impact during the second half remains uncertain. We continue to monitor the situation and will give a further update with our H1 results announcement on 12 May."
As of 0815 BST, Imperial shares were down 5.29% at 2,919p.
Reporting by Iain Gilbert at Sharecast.com
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