According to the press release, Imperial’s business is performing well and it remains on track to deliver its full year results in line with the guidance it gave at its annual results in November last year with low-mid single digit organic adjusted operating profit growth at constant currency.
In tobacco, Imperial has begun to achieve aggregate market share growth in its five priority markets with gains in US, UK and Spain more than offsetting declines in Germany and Australia. “We are investing behind the operational levers outlined at our January 2021 Capital Markets Day in each of these priority markets to drive performance improvements over time. Overall tobacco volumes are in line with expectations although COVID-19 continues to affect consumer buying patterns across different channels and markets,” Imperial said.
First half Group adjusted organic operating profit growth is expected to be least mid-single digit at constant currency, benefiting primarily from significantly reduced losses in NGP and increased Logistics profit. “Tobacco operating profit has been impacted by a lower duty windfall in Australia as previously guided and as we lap the impact of US trade inventories following the higher wholesaler purchases in March 2020 to meet COVID-19 pantry loading demand. Full year adjusted Group operating profit will reflect increased investment consistent with our strategic plans and is expected to be in line with our guidance for low-mid single digit organic growth at constant currency.”