Tobacco firm says it is on track to deliver profits in line with expectations

Bristol tobacco and cigarette manufacturer Imperial Brands has said it is on track to deliver full-year results in line with expectations.

The company has issued a guidance of low single-digit constant currency net revenue growth.

Over the next three years it continues to expect operating profit growth to accelerate to a mid-single digit growth.

In total the company made profits of £671m in Europe and £357m in the rest of the world

Imperial said the US, Spain and Australia are expected to show growing or stable market share, offsetting declines in Germany and the UK.

In all categories of next generation products Imperial has delivered a step-up in product and market launches.

New products have been launched  in the UK, Spain, France, Czech Republic and Portugal.

First-half revenues from new products are expected to be ahead of the prior period, driven by strong growth in Europe, more than offsetting declines in the US.

Excluding the impact of Imperial’s exit from Russia last year, first-half net revenue is expected to be at a similar level of last year.

Operating profit has been impacted by the planned increase in new product investment, the impact of the exit from Russia, and the continued unwind of Covid.