Proactive Investors - Imperial Brands (LON:IMB) launched a new £1.1 billion share buy-back as it said it was on track to deliver full-year guidance despite forex headwinds.
However, there was no comment on plans announced by Prime Minister Rishi Sunak to crackdown on vapes and impose a lifetime ban on younger generations smoking.
Instead, the owner of Rizla and Golden Virginia focused on its current trading performance.
It reported growth in market share in its top-five priority markets with strong tobacco pricing driving constant currency net revenue and adjusted operating profit growth.
Imperial expects tobacco and next generation product (NGP) net revenue is expected to grow in the low single digits and group adjusted operating profit growth to accelerate to the lower end of its mid-single digit range.
The firm expects foreign exchange to be a c. 2% tailwind to full-year net revenue and adjusted operating profit.
It said tobacco net revenue growth improved in the second half of the year, as continued strong pricing helped to offset the relatively higher volume declines against historic averages.
Tobacco net revenue growth has remained strong in Europe and the AAACE region, more than offsetting declines in the US.
Momentum is also building behind NGP net revenue growth across all categories, it added.
Revenue growth in NGP products accelerated in the second half of the year, driven by strong growth in Europe, with all categories of next generation products - vape, heated tobacco and oral nicotine – delivering a step-up in product and market launches during the year.
The £1.1 billion buyback was a 10% increase on the previous financial year and Imperial expects, including dividends, returns to shareholders to exceed £2.4 billion in the coming fiscal year, around 17% of its current market value.