Imperial Brands On Track to Meet Full-Year Guidance

Imperial Brands (LON: IMB) shares have dipped almost 2% Thursday, although the company said it is on track to meet its full-year guidance of growing revenue and operating profit.

“We continue to make good progress implementing our five-year strategy to transform the business,” the company said in its statement. It added that it will also meet expectations for low single-digit constant currency net revenue growth.

“Over the next three years, we continue to expect operating profit growth to accelerate to a mid-single digit CAGR at constant currency,” continued IMB.

In all categories of Imperial Brands' next-generation products (NGP), the company has delivered a step-up in product and market launches, it said, adding that first-half NGP revenues are ahead of the prior period. This is driven by the strong growth in Europe more than offsetting declines in the US, which was driven by uncertainty caused by the marketing denial order for myblu.

Meanwhile, the company expects to show growing or stable market share in the US, Spain, and Australia, offsetting declines in Germany and the UK.

Excluding the impact of the exit from Russia last year, IMB's first-half revenue is seen at a similar level to the previous year at constant currency, with strong combustible pricing offset by temporarily increased volume declines.

“We expect a stronger net revenue performance in the second half, supported by a normalisation of volume trends and price increases taken during the first half,” the company states. However, it noted that its exit from Russia is expected to result in first-half revenue being slightly below the previous year.