Imperial Brands continues to perform in line with its five-year strategy launched in 2021, the company said in a statement.

“Focused investment in our top-five combustible markets, which account for around 70 per cent of adjusted operating profit, has driven an increase in aggregate market share for those markets. Gains in the US, UK and Australia more than offset declines in Germany and Spain. These share gains were achieved while maintaining strong pricing discipline, and overall tobacco volumes are in line with expectations,” Imperial said.
Consumers have responded positively to the pilots of its Pulze heated tobacco system in Greece and the Czech Republic and an improved consumer marketing proposition for its blu vapour product in the US. “We are making good progress against our strategic objective of building a sustainable, consumer-centric Next Generation Product (NGP) business and we will provide an update on our next steps at the interim results. First-half NGP revenues are expected to be slightly ahead of the prior period, driven by growth in Europe.”
Imperial is “on track to deliver full-year results in line with our revised guidance issued on 15 March, with expected full-year net revenue growth of around 0-1 per cent on a constant currency basis and adjusted operating profit growth of around 1 per cent.”
First-half Group net revenue is expected to be broadly flat on last year on a constant currency basis, in line with its expectations. This reflects a weaker tobacco performance in Europe, which offsets growth in other regions. Europe’s performance has been driven by the return to pre-COVID purchasing patterns as Northern Europeans resume international travel, as well as price phasing in some markets. However, price increases during the latter part of the first half will support a stronger revenue performance in the second half.
First-half Group adjusted operating profit is expected to grow by around 2 per cent on a constant currency basis, benefiting primarily from reduced losses in NGP. As expected, tobacco performance will be weighted to the second half. First-half tobacco operating profit will be broadly flat on last year on a constant currency basis, with increased investment behind our strategy offsetting the benefit of reduced US litigation costs compared to last year.
“We continue negotiations with a local third party about an orderly transfer of our Russian assets and operations as a going concern. Meanwhile, we also continue to support our Ukrainian colleagues and their families, including with transport and accommodation to enable them to escape the areas most severely hit by conflict, as well as resettlement assistance for those who have left Ukraine,” Imperial added.