Tobacco group Imperial Brands has reported a rise in half-yearly profit, as higher cigarette prices helped the company offset the impact of its Russia exit and lower volumes.
The firm's operating profit rose to £1.53 billion (€1.76 billion) in the six months ended March 31, up from £1.2 billion (€1.38 billion) a year earlier.
After years of slow growth and market-share losses, Imperial CEO Stefan Bomhard laid out a turnaround plan in 2021 that focused on its five top markets and expanding next-generation products (NGP) that were deemed less harmful to health.
'Resilient' Business Performance
"Business performance for the first half of fiscal year 2023 was resilient, despite temporarily increased volume declines against a strong comparator," Bomhard said on Tuesday.
"In tobacco, we have delivered further share gains in aggregate across our portfolio of top five markets, while also achieving strong pricing to help mitigate the volume declines."
Next-Generation Products
Net revenue from Imperial's next-generation products, which include Pulze heated tobacco and blu e-cigarettes, were up 19.8% at constant currencies in the first-half, driven by product launches in Europe which helped offset declines in the United States.
Bomhard added that the group remains "on track" to deliver an acceleration in adjusted operating profit growth in the second half of its financial year, in line with its guidance and expectations.
"I am confident the actions we have taken are creating a stronger, more resilient business capable of driving shareholder returns through a growing dividend and an ongoing share buyback," he said.
Read More: Imperial Brands Expects First-Half Revenue Drop On Russia Exit
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