Proactive Investors - Imperial Brands PLC (LON:IMB), the tobacco company, said it is on track to deliver a ramp-up in both interim and full-year profits after it hiked its prices.
First-half operating profit is expected to grow by a low single-digit before the group moves into the second half which is predicted to be more heavily weighted.
Management says it is confident in meeting full-year guidance, which targets improvements to net revenues and aims to deliver a step-up in adjusted operating profit growth.
Combustible tobacco operations, which covers its cigarette brands like Golden Virginia and JPS, is said to have experienced declines in sales in the UK and Germany, albeit offset by jumps in Spain, the US and Australia.
Imperial says second-half performance will be “underpinned by embedded tobacco pricing already taken in the first half”.
Additionally, next-generation products (NGP), which are alternatives such as vapes or nicotine pouches, are predicted to build scale and therefore provide greater margin benefits to the overall group.
NGP remains a loss-making venture for the group, but the hit is expected to reduce in this financial year as revenues continue to grow by mid-to high-teens.
A £1.1 billion share buyback programme is also expected to be completed, with the group having already completed around £604 million of it.
Complete interim results will be published on May 15 2024.