Imperial Brands enjoyed increase in both tobacco and next-generation product (NGP) net revenue growth this year. Photo credit: Imperial Brands
Imperial Brands announced another year of solid operational and financial results, in line with its five-year strategy to transform the business. The company remains on track to meet its full-year guidance, with a notable increase in both tobacco and next-generation product (NGP) net revenue growth compared to last year, and adjusted operating profit growth nearing the middle of its mid-single digit target range.
Tobacco and NGP net revenue growth at constant currency accelerated, driven by strong pricing in traditional tobacco products and further expansion in the NGP sector. Investment in the company’s five priority markets has resulted in stable overall market share, with gains in the US, Spain, and Australia offsetting declines in Germany and the UK. This is in line with Imperial's medium-term goal of maintaining or increasing market share across these key regions. Additionally, pricing has remained robust, while industry-wide volume pressures have eased in many of its markets.
NGP net revenue is expected to rise by 20-30% at constant currency, with growth across all regions as the company expands its footprint. New product launches have contributed to this success, including innovative formats under the blu brand, iSenzia non-tobacco heat sticks, and new flavors in the modern oral segment. In the US, the launch of the Zone range of oral nicotine pouches has been well received, bolstering NGP performance.
Imperial Brands also reported improved group adjusted operating profit in the second half of the year, driven by strong results across all regions, including the AAACE region, where earlier shipment delays in the Middle East have been resolved. The company’s profit performance has also benefited from reduced NGP operating losses as it scales up, alongside continued investment. Growth at Logista, Imperial’s Spanish-based distribution business, has further supported the company's overall financial results.