Imperial Brands on track to meet half-year and full-year guidance

Bristol-headquartered Imperial Brands, which makes Gauloises cigarettes, Golden Virginia tobacco and Rizla tobacco paper among others, says it expects revenues on its tobacco and next generation products to grow, but slowly (single digit growth).

It said that revenue growth in both sectors has strengthened over the same period last year thanks to strong pricing, and it made market share gains in the USA, Spain and Australia, which offset expected declines in Germany and the UK.

It said: "These results are consistent with our medium-term objective to hold or grow aggregate share across these markets. At the same time, we have delivered strong pricing, more than offsetting wider industry volume pressures in certain markets."

First half net revenues on its next generation products are expected to grow in the mid- to high-teens.  Imperial Brands are now present in more than 20 European markets and the US, and, in the first half, it launched new products in all three categories. These included new single-use formats under the blu brand, new iSenzia non-tobacco heat sticks, and entry in the US oral nicotine category with the Zone range of pouches.

While operating profit is expected to be at low single digits, it is working to improve gross margins on its new products.

Imperial Brands' tobacco portfolio is made up of a combination international and local brands alongside its new range of next generation products including blu, the vape brand introduced in the US back in 2009.