Imperial Brands (LSE:IMB) reiterated its full-year FY26 guidance after a “good start” to the year, saying group adjusted operating profit will be slightly higher year on year, with growth weighted to the second half as pricing and NGP scale flow through.
For H1 the group expects low-single-digit tobacco & NGP net revenue growth. Tobacco revenue is driven by robust pricing and only a low-single-digit combustible volume decline; NGP net revenue is expected around mid-to-high single digits, with double-digit NGP growth in Europe and AAACE supported by Pulze 3.0, blu kits and new Skruf and Zone launches in the Nordics and UK.
Regionally, Europe and AAACE are described as strong contributors, offset by softer performance in the US, Australia and Logista. NGP adjusted operating losses are expected to be moderately higher. Translation FX is a c.2.0–2.5% headwind to H1 EPS and 0–1% for the full year.
Cash conversion remains strong. Imperial has completed £0.7bn of the £1.45bn FY26 buyback (about 3.2% of issued share capital) and expects full-year leverage at the lower end of a 2.0–2.5 net debt/EBITDA range. A $200m payment to R.J. Reynolds was made in H1, with $234m due in roughly equal instalments over the next three years.
“We reiterate our full-year guidance for FY26 of low-single-digit tobacco and double-digit NGP net revenue growth, three to five per cent Group adjusted operating profit growth and at least high-single-digit earnings per share growth, all at constant currency, along with at least £2.2bn in free cash flow.” Imperial Brands
Interim results for the six months to 31 March will be released on 12 May.
