Imperial Tobacco expects to report low-single-digit growth in first-half underlying revenue, when ignoring currency movements. A small decline in combustible volumes has been more than offset by strong tobacco pricing and improved Next Generation Product (NGP) sales.
In aggregate, Imperial expects that its share of its top five markets has declined modestly during the first half, reflecting a greater focus on more profitable segments. Underlying operating profit was slightly higher than the same period last year.
The company noted a more uncertain geopolitical and macro environment. However, financial performance is still expected to improve in the second half. Full-year guidance for underlying operating profit growth of 3-5% and free cash flow of at least £2.2bn was unchanged.
Just under half of this year’s £1.45bn share buyback has been completed.
The shares were down 8.4% in early trading.
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Imperial Brands key facts
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