Higher cigarette prices keep Imperial Brands on track
TOBACCO giant Imperial Brands has said it is “on track” to deliver full-year results in line with expectations.
In its latest trading update, the Bristol-based company said group net revenue was expected to grow by around 1%, driven by high cigarette prices and a reduction in losses in its next-generation products (NGP) business.
The group, which is behind brands including JPS, West, Davidoff and Gauloises, said adjusted organic operating profit growth was expected to be in line with the board’s guidance of low-to-mid single-digit constant currency growth.
Full-year adjusted operating cash conversion also remains on track, the firm said. Imperial said it remained focused on “strengthening the balance sheet”.
Chief executive Stefan Bomhard said: “We have made good progress in implementing our strategy through a sharper management focus, greater investment behind our priority combustible tobacco markets and new market trials in heated tobacco and vapour.”
According to the business, a focus on its top-five “priority markets” is beginning to halt long-term share declines. It said trials were under way for its heated tobacco in the Czech Republic and Greece, and its vapour product in the US.
Imperial said it would be monitoring the consumer response to the trials over the coming months and would update on progress during 2022.
Mr Bomhard added: “We are building a high-performance culture with the introduction of new more consumer-focused ways of working, and have made a significant number of new hires to enhance our capabilities in key areas. I am pleased to report the business continues to perform well and we remain on track to deliver our full-year results in line with expectations.”
The company’s full-year results for the 12 months ending September 30 will be announced on November 16.