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(Alliance News) - Imperial Brands PLC on Thursday said it is on track to yearly guidance, helped by price increases.
The tobacco company reiterated previous guidance that first-half group adjusted operating profit is expected to be "at a similar level" to the previous year on a constant currency basis, when it was GBP671 million.
Imperials Brands owns the Davidoff, Gauloises and Golden Virginia brands, as well as rolling paper producer Rizla.
"Tobacco & [next generation products] adjusted operating profit has been impacted by the planned increase in NGP investment, the impact of our exit from Russia, and the continued unwind of Covid-19," the firm said.
It said in the half-year to March 31, 2022, it made an adjusted operating profit of GBP7 million in Russia, a market it has since left, meaning an impact of around 1.0% on overall adjusted operating profit.
However, growth in Distribution adjusted operating profit has helped to offset these headwinds somewhat.
"We are on track to deliver full-year results in line with expectations and our guidance of low single-digit constant currency net revenue growth," Imperial said.
Looking ahead, the company said that "the US, Spain and Australia are expected to show growing or stable market share, offsetting declines in Germany and the UK. This resilient performance has been achieved while maintaining strong pricing discipline across all five markets.These results now complete two years of stable market share delivery following several years of decline."
Meanwhile, Imperial said it has completed GBP523 million of its GBP1 billion share buyback programme.
The company aims to release its half-year results on May 16.
Imperial Brands shares were 1.4% lower at 1,851.00 pence each in London on Thursday morning.
By Tom Budszus, Alliance News reporter
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