Imperial Brands says pricing boosts half-year but tobacco volumes down

Imperial Brands PLC on Tuesday affirmed its annual guidance, as it said strong pricing drove first half profit growth, though tobacco volumes declined.

Shares traded 4.3% lower at 2,950.00 pence each in London on Tuesday morning.

The owner of the Davidoff and Gauloises cigarette brands, as well as Rizla rolling paper and blu e-cigarettes, noted that there has been ‘no material business impact to date’ from the Middle East conflict.

For the first half to March 31, adjusted operating profit expected to be slightly higher at constant currency compared to £1.65 billion a year prior. Imperial Brands sees growth accelerating in the second half, in line with guidance.

‘As guided, for H1 we expect low-single-digit percent growth in tobacco & [Next Generation Products] net revenue,’ it said.

Its Next Generation Products include the Pulze heated tobacco range and blu.

Tobacco net revenue is expected to have seen low-single-digit percent growth in the first half, boosted by robust pricing, but there was a low single digit combustible volume decline.

‘We continue to build scale in NGP and expect to grow share in all three categories in H1, with NGP net revenue growth around mid-to-high single digit percent,’ the firm added.

‘This is driven by continued momentum in heated tobacco with Pulze 3.0, particularly in Italy and Greece; in vape, where our blu kit range continues to perform well; and in modern oral where new product launches in Skruf and Zone in the Nordics and UK are driving performance.’

Imperial Brands expects to see some ‘overall modest’ total market share reduction in its top five markets during the first half.

For the full-year, it still sees low-single-digit tobacco and double-digit NGP net revenue growth, as well as 3% to 5% adjusted operating profit growth and at ‘least high-single-digit earnings per share growth’. The outlook is at constant currency. It also expects at least £2.2 billion in free cash flow.

Adjusted operating profit in the year ended September 30 was £3.99 billion, adjusted EPS was 315.0p, with tobacco net revenue at £7.95 billion and NGP net revenue at £368 million. Free cash flow was £2.7 billion.

It expects a translation foreign exchange headwind of 2.0% to 2.5% on first-half earnings per share, and a 0.1% headwind for the full-year.

Imperial Brands added: ‘The conflict in the Middle East has resulted in a more uncertain geopolitical and macro environment. Whilst there has been no material business impact to date, the potential future impact during the second half remains uncertain. We continue to monitor the situation.’

The company reports half-year results on May 12.

It has completed £700 million of a £1.45 billion share buyback programme so far.

Copyright 2026 Alliance News Ltd. All Rights Reserved.