Imperial announces surge in sale of next generation vaping products
Bristol firm Imperial Brands say revenues from next generation vaping products has grown by 16.8% over the next 12 months.
The increase has come as strong tobacco pricing which was up by 8.6% more than offset falling sales.
Imperial said it is delivering stable aggregate market share in our five priority markets in line with strategic objectives.
The company said it has delivered a £1.1bn share buyback this year, alongside an increased interim dividend up 4.0%.
Imperial added it has continued confidence in successful delivery of full-year results in line with guidance, with returns improving in line with five-year strategy.
Revenues fell slightly to just over £15bn while operating profit was also down to just under £1.5bn.
Chief executive Stefan Bomhard said:: “Investment in consumer capabilities, more agile ways of working and further progress with our performance culture have made Imperial Brands a stronger business better able to deliver an acceleration in financial delivery. This is demonstrated in the first half with the strongest organic top-line growth in more than ten years, amid a challenging external environment.
“In tobacco, stronger brands and improved sales execution have enabled us both to consolidate the market share gains in our priority markets achieved in recent years and to deliver a strong price mix of 8.6%.”
He added: “In Next Generation Products (NGP), we are steadily building scale within our footprint and these efforts have resulted in net revenue growth of 16.8% on a constant currency basis. In the past six months, we have launched new products in all categories, including our entry into the US oral nicotine market with the new ‘zone’ brand. Our improved innovation capabilities, which now include three ‘Sense Hubs’ in Liverpool, Hamburg and Shenzhen, mean we are well set up to adapt to changing consumer preferences and regulatory requirements.
“Operational progress has translated into strong financial results and improving capital returns to shareholders. Alongside our progressive dividend, we are on track to complete our ongoing £1.1 billion share buyback programme and to deliver three-year cumulative returns of £6.0 billion including buybacks and our dividend.
“Pricing actions in tobacco taken in the first half and good momentum in NGP gives us confidence in our ability to deliver full-year results in line with our guidance.”
