Imperial Brands (LSE:IMB) said it remains on track to deliver its full-year guidance, expecting group adjusted operating profit to grow 3-5% in the year after reporting the six months ended 31 March.
For the six months ended 31 March tobacco & NGP net revenue rose 1.8% at constant currency, group adjusted operating profit increased 0.6% and reported operating profit fell 36.5% reflecting costs relating to the Delaware settlement and 2030 Strategy activities.
Tobacco net revenue was up 1.5% supported by 3.0% tobacco pricing while tobacco volumes fell 1.5%, and NGP net revenue grew 7.5% driven by double‑digit increases in AAACE (60.0%) and Europe (15.3%).
Adjusted earnings per share rose 5.3% driven by adjusted operating profit growth and reduced share count, while reported EPS declined 38.1%.
Cash generation remained strong with 12‑month free cash flow of £2.6bn, adjusted net debt of £10.5bn (reported net debt £10.9bn) and adjusted net debt to EBITDA steady at 2.4x, and the group completed £809m of buybacks in the period alongside an interim dividend up 4% to 83.36p.
Following the Delaware Supreme Court decision the group paid £150m to R J Reynolds in the period and said the remaining £162m will be paid in instalments over the next three years.
"We have made a positive start to the execution of our evolved 2030 Strategy, combining consistent operational and financial performance with tangible progress on our transformation," Lukas Paravicini, Chief Executive.
On a constant currency basis the company expects low‑single‑digit tobacco and double‑digit NGP net revenue growth, at least £2.2bn free cash flow for FY26 and at least high single‑digit adjusted EPS growth for the full year.
