Imperial Brands, the producer of JPS and Gauloises cigarettes, is set to announce a profit increase for the first half of 2024, thanks to a rise in tobacco prices.
The company said it's "on track" to hit financial targets for both the half-year and the full year. On Tuesday morning, investors were told that not only did they see growth in tobacco revenues on a constant currency basis, but they also experienced an upturn in their next generation products line which includes heated tobacco.
The company, however, saw a decline in its combustible tobacco business (primarily cigarettes) within the UK and Germany. But they claim that this was relatively offset by profits made in the US, Spain and Australia.
In a company statement, Imperial said "At the same time, we have delivered strong pricing, more than offsetting wider industry volume pressures in certain markets." First-half net revenues from next-generation products are expected to see a growth spike "in the mid to high teens", as the firm continues to plow money into expanding this part of the business.
Adjusted operating profits for the first half are set to outdo the levels reached in 2023. In a reassuring statement, Imperial added: "We continue to make good progress implementing our five-year strategy to transform the business and we remain confident we will deliver the full-year accelerated adjusted operating profit growth in line with our previously stated medium-term guidance."
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"This performance reflects our improved resilience to withstand geopolitical and macro-economic pressures as well as the benefit of our continued investment to strengthen performance and drive transformation."
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