Imperial Reports: Trade in line with expectations – Tobacco Reporter

Imperial Brands reported business performance for the 2024 financial year that was in line with expectations.

“We are pleased to report another year of operational and financial success as part of our five-year business transformation strategy,” the company wrote on its website before announcing its annual results on November 19.

“At constant exchange rates, we are on track to deliver in line with our full-year guidance, with acceleration in tobacco and NGP [next-generation products] Year-on-year net sales growth and group adjusted operating profit growth near the middle of our mid-single digit range.

“Currency-neutral tobacco and NGP net sales growth strengthened compared to the same period last year, supported by strong fuel prices and continued growth in our NGP business. Our investment activities in our five priority markets continue to deliver stable overall market shares, with increases in the US, Spain and Australia largely offsetting declines in Germany and the UK

These results are consistent with our medium-term goal of maintaining or increasing overall share in these markets. At the same time, we have achieved strong pricing while industry volume pressures have eased across much of our broader market presence.”

Imperial Brands expects NGP net sales to grow 20 to 30 percent on a constant currency basis, with increases in all three regions as we expand our existing footprint. “Our results this year benefited from the launch of innovative products with new formats under the Blu brand, new iSenzia tobacco-free heating rods and new flavors in the modern oral segment,” the company wrote. “Our entry into the US oral nicotine category with the introduction of the Zone pouch range was well received and supported stronger NGP performance in our US business.”

Imperial Brands’ constant currency operating profit growth improved in the second half of the year on strong results in all three regions, including the group’s Africa, Asia, Australasia and Central and Eastern Europe region, where shipping times in the Middle East are impacting the first Half time is now clear.

“Our earnings performance also reflects NGP’s lower operating losses as we expand our scale while continuing to invest in line with our plans,” Imperial wrote. “The group’s adjusted operating profit benefited from growth at Logista, the Spain-based distribution company in which we hold a 50.01 percent stake.”

Along with its trading update, Imperial Brands announced a further share buyback worth 1.25 billion pounds ($1.64 billion), which is expected to be completed before October 29, 2025. This represents around 7 percent of current share capital and represents a 13.6 percent increase in the 2024 share buyback of £1.1 billion. The company says it is on track to deliver a total share buyback return of £3.35 billion since the buyback program began in 2022.